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Systematic way of linking group of indirect cost to a cost object is classified as

A. linked allocation base

B. direct allocation base

C. indirect allocation base

D. cost allocation base

Answer: Option D

Solution(By Examveda Team)

Systematic way of linking group of indirect cost to a cost object is classified as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.

This Question Belongs to Commerce >> Costing

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