Departmentalization of overhead is known as ________.

A. primary distribution

B. secondary distribution

C. absorption

D. allocation

Answer: Option A

Solution(By Examveda Team)

Departmentalization of overhead is known as primary distribution. Primary distribution involves apportionment or allocation of overhead to all departments in a factory on logical and rational basis. This process of apportionment is also known as departmentalisation of overhead.