Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as
A. proration approach
B. appreciation approach
C. depreciation approach
D. adjusted approach
Answer: Option A
Solution(By Examveda Team)
Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as proration approach.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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