The direct cost assignment for specific cost object is classified as __________?
Correct answer: D. cost tracing
- A. cost object line cost
- B. cost object staff cost
- C. cost object indirect cost
- D. cost tracing
Explanation
Cost tracing assigns a cost directly to a specific cost object when the relationship can be identified economically, such as direct materials to a product. Indirect costs require allocation rather than direct tracing.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
In accounting, the cost incurred in past or in historical financial statements is classified as ________?
The material or anything for which cost is to be measured is known as __________?
The manager who is responsible for investments of the company, its costs and revenues is known as ______
In production, the variables such as level of activity or volume of company activity are known as ________?
In accounting, the resources sacrifice for achieving or fulfill specific objective is known as _________
The cost which is related to specific cost object and cannot be economically traceable is classified as ________?