An under allocated indirect cost is also called ____________?
Correct answer: A. both a and bAccounting & Auditing
- A. both a and bAccounting & Auditing
- B. under absorbed indirect cost
- C. absorbed indirect cost
- D. under applied indirect cost
Explanation
An underallocated indirect cost means that the amount applied to products was less than the actual indirect cost incurred. It is therefore also called underapplied or underabsorbed indirect cost.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate ____________?
An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as ____________?
The process of assigning the direct or indirect cost to any cost object is known as ____________?
If the budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be __________?
The budgeted direct labor hours are multiplied to direct labor cost rate, to calculate ____________?
The budgeted total direct labor cost is divided with budgeted total direct labor, to calculate ___________?