Which of the following best describes the term assigning costs?
A) the way costs are measured and recorded
B) the way companies can tell what money was spent
C) the benefit given up when one choice is made over another
D) the allocation applied to a cost object using a reasonable method

Question

Quizplus · Accepted Answer

Assigning costs refers to the allocation of costs to a cost object, such as a product or department, using an appropriate method that reflects the way resources are consumed. This is necessary to accurately determine the cost of producing goods or providing services and make informed decisions about pricing, budgeting, and profitability analysis.

Which of the Following Best Describes the Term Assigning Costs