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Accounting for overheads

2.2 Apportionment

Apportionment of costs is necessary when it is not possible to allocate a cost
straight to a specific cost centre. In this case, the cost is shared out over two or
more cost centres.

Costs can be apportioned according to the estimated benefit received by each cost
centre. As far as possible the basis of apportionment is selected to reflect this benefit
received. For example, the cost of equipment insurance might be apportioned
according to the value of equipment used by each cost centre.

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