Q234
Allotment of whole item of cost to a cost centre or cost unit is known as:
A.
Cost Apportionment
B.
Cost Allocation
AnswerC.
Cost Absorption
D.
Machine hour rate
Answer: Option B
Solution
Answer: Option B
Solution:
Allotment of whole item of cost to a cost centre or cost unit is known as Cost Allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.