After all manufacturing overhead costs have been assigned to the production departments, the step to assign all manufacturing overhead costs accumulated in a production department to the jobs that the department has worked on is called:
A) support department cost allocation.
B) cost distribution.
C) overhead application.
D) cost apportionment.

Question

Quizplus · Accepted Answer

This step is called overhead application, as it involves applying the costs accumulated in a production department to the specific jobs that the department has worked on. Option A (support department cost allocation) refers to the process of allocating support department costs to production departments. Option B (cost distribution) and Option D (cost apportionment) are broader terms that could refer to any process of distributing or apportioning costs, but they do not specifically describe the process of applying manufacturing overhead costs to jobs.

After All Manufacturing Overhead Costs Have Been Assigned to the Production