In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as ____________?
Correct answer: D. second incremental user
- A. First incremental user
- B. primary user
- C. secondary user
- D. second incremental user
Explanation
The ranking sequence is primary user first, first incremental user second, and second incremental user third. Thus, the third-ranked user is the second incremental user.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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