The process of assigning the costs in a cost pool to the cost objects is called:
A) cost allocation.
B) segmented profit and loss statement.
C) variance.
D) absorption costing.

Question

Quizplus · Accepted Answer

Cost allocation is the process of assigning costs from a cost pool to the cost objects that are responsible for incurring those costs. This is typically done using a cost allocation method, such as direct allocation, step allocation, or reciprocal allocation.

The Process of Assigning the Costs in a Cost Pool