वाणिज्य / Commerce

Definition of Primary Distribution of Overheads

Definition of Primary Distribution of Overheads
Definition of Primary Distribution of Overheads

Definition of Primary Distribution of Overheads- Primary distribution of overhead involves allocation or apportionment of different items of overheads to all departments of a factory, is known as departmentalization of overheads.

While making primary distribution the distinction between production departments and service departments disregarded since it is of little use.

The distribution of different item of overhead in different departments is attempted on some logical and reasonable basis.

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