The process of assigning overhead costs to the jobs that are worked on is commonly called:
A) service department cost allocation.
B) overhead cost distribution.
C) overhead application.
D) transfer costing.
E) overhead cost apportionment.

Question

Quizplus · Accepted Answer

Overhead application is the process of assigning overhead costs to specific jobs or activities based on a predetermined overhead rate. This process helps in accurately costing products or services by ensuring that the overhead costs are allocated based on the actual work done.

The Process of Assigning Overhead Costs to the Jobs That