New RBI Grade B Notification Out - 94 Vacancies - Prepare with Us!

    Register

    Question

    In cost accounting, there are various methods used to assign costs to different segments of a business. The allotment of whole items of cost to cost centres or cost units is called _____

    A Cost apportionment Correct Answer Incorrect Answer
    B Cost Allocation Correct Answer Incorrect Answer
    C Overhead absorption Correct Answer Incorrect Answer
    D All of which Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Cost allocation involves the direct assignment of whole items of cost to specific cost centers or cost units. This method ensures that the total cost is accurately attributed to the designated area of the business, facilitating better financial management and control.

    Practice Next