The process of assigning indirect costs is called
A)benchmarking.
B)tracing.
C)cost allocation.
D)cost unitizing.

Question

Quizplus · Accepted Answer

The process of assigning indirect costs to products or services is called cost allocation. This involves identifying the cost pools from which the costs are being allocated, determining an allocation base, and calculating an allocation rate to apply to each product or service based on its usage of the allocation base. Benchmarking is a process of comparing a company's performance to industry best practices. Tracing refers to the process of directly assigning a cost to a specific cost object. Cost unitizing is not a common accounting term.

The Process of Assigning Indirect Costs Is Called