Question

11. If an item of overhead expenditure is
charged specifically to a single
department this wouldbe an example of:
O a. Apportionment
O b. Allocation
Ο Ο Ο Ο
O c. Re-apportionment
O d. Absorption​

Answer 1

If an item of overhead expenditure is  charged specifically to a single  department it is allocation.

• Overheads are business expenses connected to the routine operation of the company. Overhead allocation is the efficient allocation of indirect costs to the goods generated.
• If all products are accurately collected as per the acceptable account headings, the further step is the allocation.
• The allocation and successful delivery of the products are typically done to cost centers of such reasonable expenses, which is referred to as overhead departmentalisation.