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Commerce · Q115

Costing

Graduate and Post Graduate · Commerce · question 115

Q115

Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

A.
allocation
Answer
B.
allotment
C.
primary distribution
D.
secondary distribution

Answer: Option A

Solution

Answer: Option A
Solution:
Allotment of overhead incurred for a particular cost centre to that specific cost centre is allocation. Allocation and apportionment are accounting methods for attributing cost to certain cost objects for budgeting, planning, and financial reporting.