In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as
A. over allocated budget
B. under allocated budget
C. under allocated indirect cost
D. over allocated direct cost
Answer: Option A
Solution(By Examveda Team)
In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as over allocated budget because allocated amount is less than actual amount.Join The Discussion
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Correct answer is under allocated indirect cost