📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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
    More Accounts Questions
    ask-question