Certain overhead costs cannot be directly charged to a department or cost centres. The process of distribution of such overhead costs to various departments is called

Related MCQs

• The method of re-apportionment of overhead costs which is used when service department renders its services to other service departments but does not receive services of the other service departments.
• Material costs which cannot be allocated but which are to be apportioned or absorbed by cost centres or cost units.
• Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to the …………..
• If an item of overhead expenditure is charged specifically to a single department this would be an example of:
• The process of distribution of overheads allotted to a particular department or cost center over the units produced is called:
• A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under : Factory overheads 60% of direct wages Administrative overheads 20% of work cost Selling and distribution overheads 25% of work cost it is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
• The cost of labour which is directly engaged in production work and can be conveniently identified to a job, process or cost unit is
• Rent and other building expenses may be apportioned to various departments on the basis of
• When …………………….is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.
• ………………….budget may be classified into material cost budget, labour cost budget and overhead budget.