Q142
Departmentalization of overhead is known as ________.
A.
primary distribution
AnswerB.
secondary distribution
C.
absorption
D.
allocation
Answer: Option A
Solution
Answer: Option A
Solution:
Departmentalization of overhead is known as primary distribution. Primary distribution involves apportionment or allocation of overhead to all departments in a factory on logical and rational basis. This process of apportionment is also known as departmentalisation of overhead.