Economics · Cost and Management Accounting
Which of the following statements is correct regarding the allocation, apportionment, and reapportionment of overheads in an absorption costing system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Any overheads completely assigned to a single department should be ignored
- 2Costs may only be reapportioned from production centers to service centers
- 3Allocation is the situation where a portion of an overhead cost is shared across multiple cost centers
- 4Only production-related costs (including production service costs) should be included in the product costing system✓
Correct answer
Only production-related costs (including production service costs) should be included in the product costing system
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost and Management Accounting MCQs →Want more practice questions on Cost and Management Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost and Management Accounting