A method of dealing with overheads involves spreading common costs over cost centres on the basis of benefit received. This is known as:

CS Executive · Cost and Management Accounting · PYQS · June 2017
A method of dealing with overheads involves spreading common costs over cost centres on the basis of benefit received. This is known as:
(A) Overhead absorption
(B) Overhead apportionment
(C) Overhead identification
(D) Overhead analysis

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Overheads

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