Which of the following methods of assigning costs is based on convenience or some assumed linkage and reduces the overall accuracy of the cost assignments?
A)direct tracing
B)driver tracing
C)allocation
D)indirect allocation

Question

Quizplus · Accepted Answer

Allocation is based on convenience or assumed linkage and reduces the overall accuracy of the cost assignments. Direct tracing and driver tracing are more accurate methods that assign costs based on actual usage or direct cause and effect relationships. Indirect allocation is also less accurate than direct tracing and driver tracing but is used when direct tracing or driver tracing is not feasible.

Which of the Following Methods of Assigning Costs Is Based