Cost allocation refers to an ________.
A)actual tracing of indirect costs to a cost object
B)identification of the indirect costs associated with a cost object
C)assignment of indirect costs to a cost object
D)assignment of direct costs to a cost object

Question

Quizplus · Accepted Answer

Cost allocation specifically refers to the assignment of indirect costs to a cost object. The other choices are either too narrow in scope (A) or refer to direct costs instead of indirect costs (D), or are partially correct (B) but not as specific as C.

Cost Allocation Refers to an ________