In most accounting information systems, costs are often recorded and coded so they can be summarized based on different:
A) Cost drivers
B) Cost objects
C) Volumes of activity
D) Independent variables

Question

Quizplus · Accepted Answer

Costs are usually recorded and coded based on cost objects, which are the items, activities or services for which the costs are incurred. This allows the costs to be allocated to the appropriate cost object for reporting purposes. Cost drivers, volumes of activity and independent variables may also be used in cost accounting, but they are not the primary means of summarizing costs.

In Most Accounting Information Systems, Costs Are Often Recorded and Coded