Vidyalelo
Commerce · Q664

Costing

Graduate and Post Graduate · Commerce · question 664

Q664

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

A.
sales allocation
B.
cost tracing
C.
cost allocation
Answer
D.
sales tracing

Answer: Option C

Solution

Answer: Option C
Solution:
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.