Examveda

Procedure of assigning direct cost to any cost abject is classified as

A. sales allocation

B. cost tracing

C. cost allocation

D. sales tracing

Answer: Option C

Solution (By Examveda Team)

Procedure of assigning direct cost to any cost abject is classified as cost allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

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