Which of the following is true of assigning costs to cost objects? a. Assigning costs to cost objects can be accomplished in a number of ways. b. The choice of a method for assigning costs to cost objects depends on a number of factors, such as the need for accuracy. c. Assigning costs to cost

Question

Arely Robinson

Business

26 September, 05:22

Which of the following is true of assigning costs to cost objects? a. Assigning costs to cost objects can be accomplished in a number of ways. b. The choice of a method for assigning costs to cost objects depends on a number of factors, such as the need for accuracy. c. Assigning costs to cost

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Answers (1)

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Chaz · Answer 1

A and B.

Explanation:

Understand cost classification used for assigning costs to cost objects can be divided in direct costs and indirect costs.

Direct costs are those who can be easily and conveniently traced to a unit of product or other cost object. Examples are direct material and labor.

Indirect costs are those who cannot be easily and conveniently traced to a unit of product or other cost object. Example manufacturing overhead.

The common costs are the indirect costs incurred in support a number of cost objects. These costs cannot be traced to any individual cost object.

Determining cost tracing and allocation is more art than science, as it's difficult to trace costs with 100 percent accuracy.

Tracing costs becomes even more difficult when a cost goes toward producing multiple goods or services.