The process of dividing a total cost into parts and assigning it to cost objects is known as:
A) cost tracing.
B) cost division.
C) cost allocation.
D) None of the answers are correct.

Question

Quizplus · Accepted Answer

Cost allocation is the process of dividing a total cost into parts and assigning it to cost objects. Cost tracing involves identifying and assigning direct costs to a specific cost object, and cost division is not a commonly used term in cost accounting.

The Process of Dividing a Total Cost into Parts and Assigning