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Management · Q200

Management Accounting

Graduate and Post Graduate · Management · question 200

Q200

In standard costing, standard quantity allocation is multiplied to standard overhead rates for allocating

A.
flexible costs
B.
variable costs
C.
overhead costs
Answer
D.
fixed costs

Answer: Option C

Solution

Answer: Option C
Solution:
In standard costing, standard quantity allocation is multiplied to standard overhead rates for allocating overhead costs. Overhead costs refer to those expenses associated with running a business that can't be linked to creating or producing a product or service.