Vidyalelo
Commerce · Q325

Costing

Graduate and Post Graduate · Commerce · question 325

Q325

Process of tracing direct costs and allocation of indirect costs is known as

A.
cost assignment
Answer
B.
direct assignment
C.
indirect assignment
D.
economic assignment

Answer: Option A

Solution

Answer: Option A
Solution:
Process of tracing direct costs and allocation of indirect costs is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.