Business Terms and Jargon Explained

What is Apportionment

Is where a cost is apportioned between to cost distinctions. e.g. two months rent is apportioned between the two months. This could be apportioned between a number of people, cost centers or departments etc.

When you buy a property the gas, electricity and council tax etc will have to be apportion between the buyer and sell so each pay's for the period that they owned the property.

In accounting this is a technique that is used so costs can be divided between cost centers, cost persons and departments so as to  give true costs for each.

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Term created / updated 2006-03-29 06:58:05

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