We define cost allocation as:
A)the process of tracking both direct and indirect costs associated with a cost object.
B)the process of determining the actual cost of the cost object.
C)the assignment of indirect costs to the chosen cost object.
D)a function of cost tracing.
E)not a function of cost assignment.

Question

Quizplus · Accepted Answer

Cost allocation specifically refers to the assignment of indirect costs to a chosen cost object, which distinguishes it from cost tracing (which tracks direct costs) and determining the actual cost of the cost object.

We Define Cost Allocation As