Q656
In a normal accounting period, an allocated amount of indirect cost is 700 and an actual amount is 800, then this can be classified as
A.
under allocated indirect cost
AnswerB.
over allocated direct cost
C.
over allocated budget
D.
under allocated budget
Answer: Option A
Solution
Answer: Option A
Solution:
In a normal accounting period, an allocated amount of indirect cost is 800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.