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Commerce · Q635

Costing

Graduate and Post Graduate · Commerce · question 635

Q635

Term which describes assigning of indirect cost to any cost abject is classified as

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

Answer: Option A

Solution

Answer: Option A
Solution:
Term which describes assigning of indirect cost to any cost abject is classified as cost allocation. Cost allocation is a process of providing relief to shared service organization's cost centers that provide a product or service.