Which of the following statements are not true about cost objects?
A) A cost object can be a product, customer, service, department, or activity
B) Assigning costs to cost objects can only be done through direct tracing
C) The accurate assignment of costs to cost objects is important to good operations decision making
D) A cost object is an item for which costs are measured and assigned
E) None of the above statements is true.

Question

Quizplus · Accepted Answer

Assigning costs to cost objects can be done through both direct tracing and allocation. Direct tracing assigns costs directly traceable to a cost object, while allocation distributes costs that cannot be directly traced but are still related to the cost object.

Which of the Following Statements Are Not True About Cost