Distinction between Allocation & Apportionment

- Although the purpose of both allocation and apportionment is identical, i.e to identify or allot the costs to the cost centres or cost unit, both are not the same. 

- Allocation deals with the whole items of cost and apportionment deals with proportion of items of cost. 

- Allocation is direct process of departmentalization of overheads, where as apportionment needs a suitable basis for sub-division of the cost. 

- Whether a particular item of expense can be allocated or apportioned does not depends on the nature of expense, but depends on the relation with the cost centre or cost unit to which it is to be charged.