The meaning of apportionment of overheads is:

CS Executive · Cost and Management Accounting · PYQS · June 2019
The meaning of apportionment of overheads is:
(A) A charging of discrete identifiable items of cost to cost centres or cost units
(B) The collection of cost attributable to cost centres and cost units using costing methods and principles.
(C) The division of costs amongst two or more cost centres in proportion to the estimated benefit received.
(D) The process of establishing the overheads of cost centres and cost units.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Overheads

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