Statement-I : Departmentalisation of items of costs is known as primary distribution. Statement-II : Redistribution of service department's costs is known as secondary distribution. Choose the correct option —

CS Executive · Cost and Management Accounting · PYQS · December 2015
Statement-I : Departmentalisation of items of costs is known as primary distribution. Statement-II : Redistribution of service department's costs is known as secondary distribution. Choose the correct option —
(A) Statement-I is true but Statement-II is false
(B) Both statements are true
(C) Statement-I is false but Statement-II is true
(D) Both statements are false.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Overhead Costing

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