Overhead application is also known as:
A)cost allocation.
B)overhead cost distribution.
C)overhead absorption.
D)application costing.
E)overhead cost apportionment.

Question

Quizplus · Accepted Answer

Overhead application is another term for overhead absorption or the process of allocating indirect costs to the products or services produced by a company. Choice A, cost allocation, is a broader term that includes both direct and indirect costs. Choices B, D and E are not commonly used terms in managerial accounting.

Overhead Application Is Also Known As