Term which describes assigning of indirect cost to any cost abject is classified as
A. cost allocation
B. sales tracing
C. sales allocation
D. cost tracing
Answer: Option A
Solution(By Examveda Team)
Term which describes assigning of indirect cost to any cost abject is classified as cost allocation. Cost allocation is a process of providing relief to shared service organization's cost centers that provide a product or service.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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