Vidyalelo
Commerce · Q329

Costing

Graduate and Post Graduate · Commerce · question 329

Q329

Process of assigning indirect costs to any specific cost object is known as

A.
economic cost
B.
cost tracing
C.
cost allocation
Answer
D.
non-economic costs

Answer: Option C

Solution

Answer: Option C
Solution:
Process of assigning indirect costs to any specific cost object is known 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.