An allocation base used in the process cost allocation is known as
A)cost processor.
B)cost object.
C)cost driver.
D)cost pooler.

Question

Quizplus · Accepted Answer

The allocation base used in process cost allocation is known as a cost driver. A cost driver is a factor that causes a particular cost to be incurred. It is used to allocate the cost of resources to cost objects or production processes. Therefore, choice C is the correct answer. Option A (cost processor) and option D (cost pooler) are not relevant terms in the process cost allocation. Option B (cost object) is also an important concept in cost accounting but it is not the allocation base used in process cost allocation.

An Allocation Base Used in the Process Cost Allocation Is