Concept:Cost apportionment distributes common costs or shared overheads among different cost centres.
Explanation:When a cost is incurred for the benefit of two or more cost centres, it cannot be directly charged to only one centre.
Such a cost is called a common cost.
Cost apportionment shares this common cost fairly among the relevant cost centres using suitable bases such as floor area, number of workers, or machine hours.
This makes it possible for each cost centre to bear its fair share of the overhead.
The purpose is not simply to control variable or indirect costs.
It is also not about gathering overheads into cost units at that stage.
The key purpose is to ensure that common costs are shared among cost centres.
Answer:D. common costs are shared among cost centres.