An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called
A. unadjusted budget rate approach
B. adjusted allocation rate approach
C. unadjusted allocation rate approach
D. adjusted budget rate approach
Answer: Option B
Solution(By Examveda Team)
An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called adjusted allocation rate approach. The adjusted allocation-rate approach restates or corrects estimated overhead costs booked throughout the year, so that the actual overhead costs are recorded properly.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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