Which of the following terms indicate that costs are directly caused by the cost object?
A)Allocated
B)Assigned
C)Common
D)Variable

Question

Quizplus · Accepted Answer

Variable costs are costs that vary directly with changes in the cost object, meaning that as the cost object changes, so do the costs. Allocated and assigned costs are costs that are indirectly related to the cost object through some allocation method or predetermined amount. Common costs are costs that are shared between multiple cost objects and cannot be directly traced to any one specific object.

Which of the Following Terms Indicate That Costs Are Directly