reciprocal costs

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Costs apportioned from a service cost centre to a production cost centre that carries out work for the original service cost centre. Consequently, a proportion of the production cost centre costs should also be re-apportioned to the service cost centre. Cost apportionment can be calculated either by the use of simultaneous equations or by a continuous apportionment method, until all the costs are charged to the production cost centre.

Subjects: Accounting.

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