The process of collecting costs by some natural classification is called ________.
A)cost accounting
B)cost allocation
C)cost accumulation
D)cost application

Question

Quizplus · Accepted Answer

Cost accumulation refers to the process of collecting costs by some natural classification, such as labor costs, material costs, or overhead costs. Cost accounting is a broader term that includes various techniques and methods to record, classify, and summarize costs for managerial analysis and decision-making. Cost allocation refers to the process of assigning indirect costs to specific cost objects or products based on some allocation method or criteria. Cost application is not a commonly used term in cost accounting.

The Process of Collecting Costs by Some Natural Classification Is