[amp_mcq option1=”allocation” option2=”allotment” option3=”primary distribution” option4=”secondary distribution” correct=”option1″]<\/p>\n
The correct answer is: A. allocation<\/strong>.<\/p>\n Allocation is the process of assigning costs to cost objects. A cost object is anything for which a separate measurement of costs is desired. Common cost objects include products, services, departments, and activities.<\/p>\n There are two main types of cost allocation: direct allocation and indirect allocation. Direct allocation is the process of assigning costs that can be easily traced to a specific cost object. For example, the cost of direct materials used in a product is directly allocated to that product.<\/p>\n Indirect allocation is the process of assigning costs that cannot be easily traced to a specific cost object. For example, the cost of factory overhead is indirectly allocated to products based on some allocation base, such as machine hours or direct labor hours.<\/p>\n In the context of the question, the allotment of overhead incurred for a particular cost center to that specific cost center is an example of direct allocation. This is because the cost of overhead can be easily traced to the cost center that incurred it.<\/p>\n The other options are incorrect because they do not accurately describe the process of allocating costs to cost objects.<\/p>\n [amp_mcq option1=”allocation” option2=”allotment” option3=”primary distribution” option4=”secondary distribution” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-47842","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n