BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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assigning costs
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accumulating costs
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assigning and then accumulating costs
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accumulating and then assigning costs
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Detailed explanation-1: -Cost allocation is the process of identifying, accumulating and assigning costs to specific cost objects.
Detailed explanation-2: -It is a process of linking costs to their place of origin. Cost Assignment is mainly useful for an activity-based costing method, where linking of overhead expenses occurs where incurrence takes place of these overheads. Cost Allocation is the other name of Cost Assignment.
Detailed explanation-3: -(12) Cost accumulation system means a system for the accumulation of service company costs on a job, project, or functional basis. It includes schedules and worksheets used to account for charges billed to single and groups of associate and non-associate companies.
Detailed explanation-4: -Cost allocation is the process of identifying, accumulating, and assigning costs to costs objects such as departments, products, programs, or a branch of a company.
Detailed explanation-5: -Focusing on a certain item, the value obtained by adding the external cost (the cost of assembling or manufacturing constituent items) to the internal cost of the item itself is called Accumulated Cost.