The main distinction between allocation and apportionment of overheads are as follows:

Allocation

1. The whole item of cost is allocated.

2. It is a simple and direct process.

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3. In this case the cost centre enjoys the whole of the benefit of the expenses.

Apportionment

1. The proportionate item of cost is charged.

2. It is an indirect process where cost is divided on suitable basis.

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3. In this case the cost centre enjoys a proportion of the benefit of the whole expenses.