Uniformly assigning the costs of resources to cost objects when those resources are actually used in a nonuniform way is called:
A)overcosting
B)undercosting
C)peanut-butter costing
D)department costing

Question

Quizplus · Accepted Answer

Uniformly assigning costs, even when the resources are used in a non-uniform way, is called peanut-butter costing because the costs are spread evenly like peanut butter on a slice of bread. This approach can lead to overcosting or undercosting certain cost objects, which can lead to inaccurate cost analysis and decision-making.

Uniformly Assigning the Costs of Resources to Cost Objects When