In a given scenario, if cost is considered as indirect cost then independent variable will be considered as
A. demand allocation base
B. supply allocation base
C. cost allocation base
D. price allocation base
Answer: Option C
Solution(By Examveda Team)
In a given scenario, if cost is considered as indirect cost then independent variable will be considered as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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