The basis of apportionment of overheads which takes into account the profitability of various departments is called —

CS Executive · Cost and Management Accounting · PYQS · December 2015
The basis of apportionment of overheads which takes into account the profitability of various departments is called —
(A) FIFO basis
(B) LIFO basis
(C) Ability to pay basis
(D) Activity basis.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Overhead Costing

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