Reciprocal Costs

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August 31, 2024 5 min read Definitions

Reciprocal Costs: Apportioned Costs in Cost Accounting

Finance Accounting Cost Accounting Reciprocal Costs Apportionment Service Cost Centre Production Cost Centre

Reciprocal Costs are the costs apportioned between service and production cost centers. This method ensures a fair distribution of shared costs in an organization using simultaneous equations or continuous apportionment methods.

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