In a departmental account, where no basis of apportionment exist, apportionment is
Answer Details
When there is no basis of apportionment in a departmental account, the apportionment should be done on an equal basis. This means that the expenses are divided equally among the departments without considering any other factors such as profits, employee decisions, or available materials.
Apportionment is the process of distributing common expenses among the different departments or cost centers within an organization. It helps in determining the true cost of each department and enables better decision-making. However, if there is no clear basis for apportionment, an equal distribution is the most fair and unbiased way to divide the expenses. This ensures that each department is allocated an equal share of the expenses and reduces the risk of any department feeling unfairly treated or disadvantaged.