The process of allocating and apportioning the costs on suitable basis to all the departments is _______.

departmentalization
primary distribution
secondary distribution
classification

The correct answer is: B. primary distribution.

Primary distribution is the process of allocating and apportioning the costs on suitable basis to all the departments. It is the first step in the cost allocation process. The costs are allocated

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to the departments based on the departments’ activities or functions.

The other options are incorrect because:

  • A. departmentalization is the process of grouping activities or functions into departments.
  • C. secondary distribution is the process of allocating the costs from the departments to the cost objects.
  • D. classification is the process of grouping costs into different categories.

I hope this helps! Let me know if you have any other questions.

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