Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as
A. over allocated budget
B. under allocated budget
C. under allocated indirect cost
D. over allocated direct cost
Answer: Option C
Solution (By Examveda Team)
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.
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