A factor used to systematically link an indirect cost to a cost object is called
A)a cost allocation base.
B)a cost pool.
C)cost assignment.
D)a traceable cost.
E)a non-traceable cost.

Question

Quizplus · Accepted Answer

A cost allocation base is used to allocate or assign indirect costs to cost objects. It is a factor that can be used to measure the consumption of indirect costs by a specific cost object. Examples of cost allocation bases include direct labor hours, machine hours, and square footage.

A Factor Used to Systematically Link an Indirect Cost to a Cost