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Commerce · Q471

Costing

Graduate and Post Graduate · Commerce · question 471

Q471

In a given scenario, if cost is considered as indirect cost then independent variable will be considered as

A.
demand allocation base
B.
supply allocation base
C.
cost allocation base
Answer
D.
price allocation base

Answer: Option C

Solution

Answer: Option C
Solution:
In a given scenario, if cost is considered as indirect cost then independent variable will be considered as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.