Many businesses charge overheads to jobs, in a job costing environment, on a departmental basis.

What is the advantage which is claimed for charging overheads to jobs on a departmental basis and why is it claimed?

What circumstances need to exist to make a difference to a particular job whether overheads are charged on a ‘business-wide’ basis or on a ‘departmental’

basis. (Note that the answer to this part of the question is not specifically covered in the chapter. You should, nevertheless, be able to deduce the reason from what you know.)