To assign indirect costs to cost objects,which of the following methods is used?
A) cost pooling
B) cost accumulation
C) cost allocation
D) cost tracing

Question

Quizplus · Accepted Answer

Cost allocation is the method used to assign indirect costs to cost objects. This involves identifying the indirect costs and then allocating them to the appropriate cost object based on some predetermined allocation basis. Cost pooling is a process of grouping together costs that are difficult to allocate individually, cost accumulation is a method of collecting and summarizing cost information, and cost tracing is a process of directly assigning costs to the cost object. However, none of these methods are specifically designed for the allocation of indirect costs to cost objects.

To Assign Indirect Costs to Cost Objects,which of the Following