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Commerce · Q333

Costing

Graduate and Post Graduate · Commerce · question 333

Q333

Direct cost assignment for specific cost object is classified as

A.
cost object line cost
B.
cost tracing
Answer
C.
cost object indirect cost
D.
cost object staff cost

Answer: Option B

Solution

Answer: Option B
Solution:
Direct cost assignment for specific cost object is classified as cost tracing. Cost tracing is the process of directly matching a cost with a product being produced, where cost allocation uses estimates to apply costs to products.