Allotment of whole item of cost to a cost centre or cost unit is known as:
A
Cost Apportionment
B
Cost Allocation
C
Cost Absorption
D
Machine hour rate
Correct Answer: Cost Allocation
Allotment of whole item of cost to a cost centre or cost unit is known as Cost Allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.