________ is the process of assigning indirect costs to products.
A) Cost allocation
B) Job cost recording
C) Cost pooling
D) Cost tracing

Question

Quizplus · Accepted Answer

Cost allocation is the process of assigning indirect costs to products. This involves identifying and grouping different indirect costs, such as rent or utilities, and then allocating them to specific products based on various allocation methods, such as direct labor hours or machine usage. Job cost recording refers specifically to the process of tracking the costs associated with a particular job or project, while cost pooling involves grouping similar costs together. Cost tracing, on the other hand, involves directly identifying and assigning costs to specific products or activities.

________ Is the Process of Assigning Indirect Costs to Products