Accounting · Cost Accounting
What is the primary purpose of overhead apportionment?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To transfer costs from service centres to production centres
- 2To charge overheads to a cost unit
- 3To divide common overhead costs among different cost centres on a fair basis✓
- 4To allocate direct costs to cost centres
Correct answer
To divide common overhead costs among different cost centres on a fair basis
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