The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is ________.
A) cost accumulation
B) cost assignment
C) cost tracing
D) conversion costing

Question

Quizplus · Accepted Answer

Cost assignment is the general term used to identify both the tracing and the allocation of accumulated costs to a cost object. Cost accumulation refers only to the process of collecting and adding up costs, while cost tracing refers only to the process of identifying the direct and indirect costs associated with a particular cost object. Conversion costing is a term used specifically in manufacturing to refer to the process of converting raw materials into finished goods, and is not a general term for cost allocation and tracing.

The General Term Used to Identify Both the Tracing and the Allocation