A cost of operating a facility,department,activity area,or like cost object that is shared by two or more users is called a ________.
A) combined cost
B) distinct cost
C) fixed cost
D) common cost

Question

Quizplus · Accepted Answer

Common costs are costs that are shared by two or more cost objects, such as users or departments. These costs cannot be easily allocated to a single user or department, and must be apportioned based on some reasonable method, such as usage or headcount. Examples include rent, utilities, and insurance costs for a shared office space.

A Cost of Operating a Facility,department,activity Area,or Like Cost Object