Q654
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as
A.
over allocated budget
B.
under allocated budget
C.
under allocated indirect cost
AnswerD.
over allocated direct cost
Answer: Option C
Solution
Answer: Option C
Solution:
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.