In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as
A. under allocated indirect cost
B. over allocated direct cost
C. over allocated budget
D. under allocated budget
Answer: Option A
Solution(By Examveda Team)
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.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
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