In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as
A. incurred indirect cost
B. over allocated indirect cost
C. applied indirect cost
D. applied direct cost
Answer: Option B
Solution(By Examveda Team)
In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as over allocated indirect cost. Indirect costs are usually grouped into common pools and charged to benefiting objectives through an allocation process/indirect cost rate.Related Questions on Costing
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A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
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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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