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Explain four considerations that management should take into account in choosing the basis of cost apportionment.

      

Explain four considerations that management should take into account in choosing the basis of cost apportionment.

  

Answers


Kavungya
1. Level of significance of the overhead cost
2. Management policy-The absorption base should not be inconsistent
with management policies on absorption
3. The relationship of overhead cost and basis of apportionment
4. Availability of information in relation to basis of apportionment
5. Management should consider if the basis is equitable
Kavungya answered the question on May 16, 2019 at 13:57


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