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To get a better idea of how departments are performing without going through the expense of having a bookkeeper identify and post every single transaction to the proper department. Apportioning expenses is usually done for operating expenses that are not specifically identifiable to one department / product line, but are generally applicable to all departments. This is usually done on a ratio basis - typically a percent of sales. For intance if a company has 20 departments and Dept 3's sales for a certain period are x% of total sales, then x% of the expenses in question would be attributed (apportioned) to x's total cost of operations. (Apportioning TYPICALLY occurs in tax - when you apportion income to different states - and is usually basedon several factors - where the sales originated / were completed, where the related employees' pay was earned, and where any of the applicable fixed assets are located.)

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Q: Why do some businesses apportion some of their expenses between different departments?
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