Accounting JAMB

The process of cost apportionment is carried out so that?

A. indirect costs may be controlled
B. cost units could gather overhead as they pass through cost centres
C. variable costs may be controlled
D. common costs are shared among cost centres

Correct Answer:

Option D – common costs are shared among cost centres

Explanation

Cost apportionment is the sharing of commonly incurred expenses proportionately where two or more cost centres are involved

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