The cost object user, who is ranked first in incremental cost allocation method is known as _________?
Correct answer: B. primary user
- A. First incremental user
- B. primary user
- C. secondary user
- D. second incremental user
Explanation
In incremental cost allocation, the cost object user ranked first is the primary user. Users ranked after the primary user are identified as first, second, and later incremental users.
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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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