Module 10 - Overhead Accounting

Question 1

Overhead

Answer 1

any cost which doesn’t relate to a specific product

Question 2

Overhead appointment process

Answer 2

1. allocation
2. re-apportion
3. absorption

Question 3

Direct method of reapportioning service centre costs

Answer 3

Reapportion costs directly to production departments ignoring the time service departments spend in other service departments

Question 4

Indirect method of reapportioning

Answer 4

The first service department to have its costs reapportioned across the other departments is the one that spends the greatest proportion of its time providing services to the other service department