Allocation, Apportionment and Allocation of Cost:

Allocation:
Allocation refers to the process of assigning or distributing the cost of a specific item to one or more cost centers or cost objects. The objective of allocation is to distribute the cost of an item in a fair and appropriate manner.

Apportionment:
Apportionment refers to the process of distributing or allocating the cost of a common item or service to two or more cost centers or cost objects. The objective of apportionment is to divide the cost of a common item or service in a fair and reasonable manner.

Allocation of Cost:
Allocation of cost refers to the process of assigning or distributing the total cost of a product or service to its various cost centers or cost objects. The objective of allocation of cost is to determine the true cost of a product or service by taking into account all the costs associated with its production or provision.

Difference between Allocation, Apportionment and Allocation of Cost:

Allocation:
- Allocation is used to assign or distribute the cost of a specific item to one or more cost centers or cost objects.
- Allocation is used when a direct relationship exists between the cost and the cost center or cost object.
- Allocation is used for items that are directly traceable to a particular cost center or cost object.
- Allocation is used to determine the true cost of a product or service.

Apportionment:
- Apportionment is used to distribute or allocate the cost of a common item or service to two or more cost centers or cost objects.
- Apportionment is used when a direct relationship does not exist between the cost and the cost center or cost object.
- Apportionment is used for items that are indirectly traceable to a particular cost center or cost object.
- Apportionment is used to divide the cost of a common item or service in a fair and reasonable manner.

Allocation of Cost:
- Allocation of cost is used to assign or distribute the total cost of a product or service to its various cost centers or cost objects.
- Allocation of cost is used to determine the true cost of a product or service by taking into account all the costs associated with its production or provision.
- Allocation of cost is used when both direct and indirect costs are involved.
- Allocation of cost can involve both allocation and apportionment techniques.

In summary, allocation is used when a direct relationship exists between the cost and the cost center or cost object, apportionment is used when a direct relationship does not exist between the cost and the cost center or cost object, and allocation of cost is used to determine the true cost of a product or service by taking into account all the costs associated with its production or provision.