Examveda

Allotment of whole item of cost to a cost centre or cost unit is known as:

A. Cost Apportionment

B. Cost Allocation

C. Cost Absorption

D. Machine hour rate

Answer: Option B

Solution (By Examveda Team)

Allotment of whole item of cost to a cost centre or cost unit is known as Cost Allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

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