A-LevelAccountingTraditional costing methods9706/12 · May/June 2025 · Q261 Mark

Which statement describes the purpose of overhead allocation?

Aassignment of specific costs to production departments

Bassignment of specific costs to service departments

Csharing out common costs between production departments

Dsharing out common costs between service departments

✓ Correct answer

A: assignment of specific costs to production departments

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2025 Paper 1 Variant 2, question 26.

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