The process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as __________?
Correct answer: A. revenue allocation
- A. revenue allocation
- B. revenue object
- C. revenue increment
- D. reciprocal revenue
Explanation
Revenue allocation assigns revenue to particular revenue objects when the revenue cannot be traced to them economically or cost-effectively. The other options are not standard names for this assignment process.
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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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