The process of dividing a total cost into parts and assigning it to cost objects is known as:
A) cost tracing.
B) cost division.
C) cost allocation.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

Cost allocation involves dividing a total cost and assigning it to specific cost objects, such as products, departments, or activities. Cost tracing refers to the direct identification of a cost incurred for a particular object or activity, while cost division is not a commonly used term in cost accounting. Therefore, the best choice is C, cost allocation.

The Process of Dividing a Total Cost into Parts and Assigning