Which of the following is a measure of activity used to distribute indirect costs?
A)Cost objective
B)Cost pool
C)Cost driver
D)Cost unitization

Question

Quizplus · Accepted Answer

A cost driver is a measure of activity used to distribute indirect costs. Cost objective refers to a specific product, service, or department to which costs are assigned. Cost pool is a grouping of individual cost items. Cost unitization is the process of dividing total cost by the number of units produced to determine the cost per unit. None of these directly relate to measuring activity for the distribution of indirect costs.

Which of the Following Is a Measure of Activity Used