2804. Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as

over allocated budget
under allocated budget
under allocated indirect cost
over allocated direct cost
✅ The correct answer is C.
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.

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