Difference
between Allocation and apportionment
The allocation and apportionment are two different methods
of charging expense to a cost center. Difference is being explained below
1. Allocation
Expenses are directly
charged to a cost center or department. Allocation
is done where an expense is directly traceable to a cost center. For example
direct material and direct labor are allocated instead of apportioned.
2. Apportionment
Where the expenses are not
directly traceable to a cost center, then it is apportioned to cost centers by
using appropriate bases. For example factory rent is distributed to different
department on the bases of space occupied.
