_____ is the process of collecting costs by classification.
A)Cost accumulation
B)Cost accounting
C)Cost allocation
D)Cost application

Question

Quizplus · Accepted Answer

Cost accumulation is the process of collecting and recording costs by classification such as direct material costs, direct labor costs, and overhead costs. Cost accounting refers to the overall process of recording, classifying, and reporting all of the costs associated with a business. Cost allocation is the process of assigning costs to specific products, services, or activities. Cost application refers to the process of assigning costs to a cost object such as a product or service. While all four of these processes are important aspects of cost management, only cost accumulation is specifically focused on collecting costs by classification.

_____ Is the Process of Collecting Costs by Classification