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Commerce · Q608

Costing

Graduate and Post Graduate · Commerce · question 608

Q608

Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as

A.
bundled cost
B.
common cost
Answer
C.
stand-alone cost
D.
incremental cost

Answer: Option B

Solution

Answer: Option B
Solution:
Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as common cost. A common cost is a cost that is not attributable to a specific cost object, such as a product or process.