Why are service cost center overheads reapportioned to production cost centers?

Service cost center overheads are reapportioned to production cost centers to ensure that all costs associated with producing goods are accurately reflected in the total cost of production. This process helps in assigning the true cost of resources consumed by production activities, allowing for more accurate pricing, budgeting, and financial analysis. By redistributing these overheads, organizations can better understand the profitability of their products and make informed managerial decisions. Ultimately, it enhances the overall cost accuracy and efficiency within the organization.