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Commerce · Q126

Costing

Graduate and Post Graduate · Commerce · question 126

Q126

The allotment of whole item of cost to cost centre or cost units is called _________.

A.
cost allocation
Answer
B.
cost apportionment
C.
cost absorption
D.
cost disbursement

Answer: Option A

Solution

Answer: Option A
Solution:
The allotment of whole item of cost to cost centre or cost units is called cost allocation. The term allocation means the allotment of the whole item without division to a particular department or cost centre.