BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost accumulation
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cost assignment
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cost tracing
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cost apportionment
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Detailed explanation-1: -Cost assignment is the general word used to describe both the tracing and the allocation of collected expenses to a cost object.
Detailed explanation-2: -Answer and Explanation: The correct answer is option b. cost assignment.
Detailed explanation-3: -A costing system accumulates costs and then assigns these costs to cost objects.
Detailed explanation-4: -Solution(By Examveda Team) Process of tracing direct costs and allocation of indirect costs is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.
Detailed explanation-5: -Cost tracing is the process of appointing costs to the related cost center. This process is specifically used for assigning direct costs to cost centers. It is a difficult and complex process. This process ensures accurate tracing of costs to cost centers.