A cost system determines the cost of a cost object by ________.
A) accumulating and then assigning costs
B) accumulating costs
C) assigning and then accumulating costs
D) assigning costs

Question

Quizplus · Accepted Answer

The cost system determines the cost of a cost object by accumulating all the costs related to that object and then assigning those costs to the object based on a predetermined allocation base. Option A accurately describes this process.

A Cost System Determines the Cost of a Cost Object