Vidyalelo
Commerce · Q38

Costing

Graduate and Post Graduate · Commerce · question 38

Q38

Charging output with overhead at reasonable rate is called ________.

A.
allocation
B.
appropriation
C.
apportionment
Answer
D.
absorption

Answer: Option C

Solution

Answer: Option C
Solution:
Charging output with overhead at reasonable rate is called apportionment. Distribution of an overhead cost to several departments or cost centers is known as apportionment of overheads.