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Departmentalization of overhead is known as ________.
- Aprimary distribution
- Bsecondary distribution
- Cabsorption
- Dallocation
Correct answer: A
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primary distribution
Departmentalization of overhead is known as primary distribution. Primary distribution involves apportionment or allocation of overhead to all departments in a factory on logical and rational basis. This process of apportionment is also known as departmentalisation of overhead.
Departmentalization of overhead is known as primary distribution. Primary distribution involves apportionment or allocation of overhead to all departments in a factory on logical and rational basis. This process of apportionment is also known as departmentalisation of overhead.