A common classification of costs is by business function. Which of the following classifications is not by business function?
A) cost object
B) research and development
C) distribution
D) production

Question

Quizplus · Accepted Answer

Cost object is not a classification of costs by business function. It refers to the specific product, service, or department to which a cost is assigned. The other options, research and development, distribution, and production, are all classifications of costs by business function.

A Common Classification of Costs Is by Business Function