Cost assignment :
A)is always arbitrary
B)is includes tracing and allocating
C)is the same as cost accumulation
D)is finding the difference between budgeted and actual costs

Question

Quizplus · Accepted Answer

Cost assignment involves both tracing direct costs to cost objects and allocating indirect costs to cost objects. Cost accumulation is a broader term that refers to the collection of costs by cost centers or cost objects. Therefore, B is the correct answer. A is incorrect because cost assignment is not always arbitrary; it can be a systematic process. C is incorrect because cost accumulation is a broader term than cost assignment, as stated previously. D is also incorrect because cost assignment is not related to budgeted or actual costs.

Cost Assignment