Unallocated costs ________.
A) are not recorded in the cost accounting system
B) do not have cost drivers that can be used to relate the costs to cost objects
C) have a direct relationship to a cost object
D) have an identifiable relationship with a cost object

Question

Quizplus · Accepted Answer

Unallocated costs cannot be assigned to specific cost objects because there are no cost drivers available to allocate them, meaning they are not directly related to a particular cost object. As a result, they are not recorded in the cost accounting system.

Unallocated Costs ________