The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
Correct answer: B. common cost
- A. bundled cost
- B. common cost
- C. stand-alone cost
- D. incremental costTrack Stock Earnings
Explanation
A common cost arises from a facility, activity, or resource used by two or more users, so it must be allocated among them. A stand-alone cost belongs to one user considered separately.
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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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