CAF-5 · Chapter 2 · Question 4 of 10
The process of distributing the accumulated costs of service departments to the production departments based on the services provided is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Secondary apportionment (Re-apportionment)
Explanation
The initial distribution of overheads to all departments (production and service) is primary apportionment. The subsequent transfer of service department costs to production departments is termed secondary apportionment or re-apportionment.
More Overheads MCQs
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