________ is the process of distributing 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 distributing indirect costs to products based on an allocation base, such as direct labor hours or machine hours. This is done to more accurately determine the total cost of producing a product and to help with pricing and profitability analysis. Job cost recording is the process of tracking the direct costs of a specific job, while cost pooling refers to grouping together costs that are similar in nature. Cost tracing is the process of tracking all costs associated with a specific product or service.

________ Is the Process of Distributing Indirect Costs to Products