Select the false statement from the following.

A. Only direct costs are traced to cost objects.

B. The same cost may be assigned to more than one cost object.

C. General, selling, and administrative costs cannot be assigned to a cost object.

D. A given cost can be driven by more than one cost driver.

Question

Phillip Nichols

Business

24 September, 07:47

Select the false statement from the following.

A. Only direct costs are traced to cost objects.

B. The same cost may be assigned to more than one cost object.

C. General, selling, and administrative costs cannot be assigned to a cost object.

D. A given cost can be driven by more than one cost driver.

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Answers (1)

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Rambo · Answer 1

Answer: Option C.

General, selling and administrative cost cannot be assigned to a cost object.

Explanation:

General, selling and adminstrative cost is the total of both direct and indirect selling cost, administrative cost and all general cost of the organisation. This cost include all the non production cost that they company incured at a specific time bond i. e cost to sell, cost to deliver product and services, rent, cost to manage the company, marketing expenses, salaries, accounting, bonuses e. t. c.

It is not assigned to a cost object because it is general, cost of selling, and administrative cost.

Select the false statement from the following.A. Only direct costs are traced to cost objects.B. The same cost may be assigned to more than one cost object.C. General, selling, and administrative costs cannot be assigned to a cost object.D. A given cost can be driven by more than one cost driver.