Which of the following types of costs is generally allocated among different revenue generating departments (or cost centres)?
A) overhead costs
B) incremental costs
C) discretionary costs
D) step costs

Question

Quizplus · Accepted Answer

Overhead costs are generally indirect costs that cannot be directly traced to a specific product or service. These costs are usually allocated among different revenue generating departments or cost centres based on a predetermined allocation method.

Which of the Following Types of Costs Is Generally Allocated