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Departmentalization of overhead is known as

This question belongs to Commerce Costing
Costing
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Departmentalization of overhead is known as ________.

Answer & Solution
Correct Answer: Option A
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.
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