Charging output with overhead at reasonable rate is called ________.
A. allocation
B. appropriation
C. apportionment
D. absorption
Answer: Option C
Solution (By Examveda Team)
Charging output with overhead at reasonable rate is called apportionment. Distribution of an overhead cost to several departments or cost centers is known as apportionment of overheads.Join The Discussion
Comments (1)
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
Charging output with overhead at reasonable rate is called Absorption. Apportionment is distributing overheads to departments or cost centers