Q528
Broad's average use to assign cost of revenue to cost objects will be classified as
A.
refined costing system
AnswerB.
refined selling system
C.
undefined costing
D.
defined selling system
Answer: Option A
Solution
Answer: Option A
Solution:
Broad's average use to assign cost of revenue to cost objects will be classified as refined costing system. A refined costing system reduces the use of broad averages for assigning the cost of resources to cost objects (such as jobs, products, and services) and provides better measurement of the costs of indirect resources used by different cost objects no matter how differently various cost objects use indirect resources.