Question

    Which is not a method of overhead apportion mechanism?

    A Charging the entire amount of overhead to the balance sheet Correct Answer Incorrect Answer
    B Standing orders Correct Answer Incorrect Answer
    C Departmentalization of overheads Correct Answer Incorrect Answer
    D Survey of existing conditions Correct Answer Incorrect Answer

    Solution

    "Charging the entire amount of overhead to the balance sheet" is not a method of overhead apportionment mechanism. Overhead apportionment refers to the process of allocating indirect costs (overhead) to different cost centers or departments in a systematic manner. This allocation is necessary to determine the true cost of products or services and to fairly distribute overhead expenses among various cost centers.

    Practice Next