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  SHORT ANSWER QUESTIONS AND ANSWERS 1. Define Cost Accounting. Cost accounting is a systematic process of recording, classifying, analyzing, and reporting costs associated with a business's operations. Its primary goal is to help management in planning, controlling, and decision-making regarding cost efficiency and profitability.   2. What is meant by cost centre? A cost centre is a segment of an organization to which costs can be attributed. It can be a department, a production line, or an activity. Managers of cost centres are responsible for the costs incurred within their area but do not directly generate revenue . 3. Define EOQ. EOQ is an inventory management formula that determines the optimal order quantity to minimize the total inventory costs, including ordering costs and holding costs. It aims to strike a balance between frequent small orders and infrequent large orders. 4. Explain ABC analysis. s :  ABC analysis is an inventory categorization tec...

  Secondary Distribution method of Apportionment of Overheads             Service department cost are to be reapportioned to the production departments or the cost centers where production is going on . This process of reapportionment of overhead expenses is known as “secondary distribution”. Following is list of bases of apportionment which may be accepted for the service departments noted against each   Service Department Cost Basis of Apportionment 1. Maintenance Department Hours worked 2. Payroll or time Keeping Total labour hours or Machine hours or Number of employees 3. Employment   or personal department Rate of labour turnover   or number of employees 4. Store keeping department No of Requistion or value of material 5. ...