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.

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