A cost of operating a facility, department, activity area, or like cost object that is shared by two or more users is called a:
A)direct cost
B)joint cost
C)fixed cost
D)common cost

Question

Quizplus · Accepted Answer

A common cost is a cost that is incurred for the benefit of two or more cost objects but cannot be directly traced to each of them. Joint cost, fixed cost, and direct cost are not applicable to this definition.

A Cost of Operating a Facility, Department, Activity Area, or Like