Asked by Christine Angora on Jun 10, 2024
Verified
An allocation base may also be referred to as a:
A) cost object.
B) common cost.
C) cost driver.
D) joint base.
Allocation Base
A measure or quantity used as a basis for distributing costs among various cost objects, such as products or departments.
Cost Driver
A cost driver is a factor that causes or influences the cost of certain activities, products, or services, varying in direct proportion to the level of activity or volume.
Cost Object
A cost object is any item for which costs are separately measured and tracked, such as products, projects, or departments.
- Acquire understanding of the importance and mechanisms involved in cost allocation in accounting and management contexts.
Verified Answer
Learning Objectives
- Acquire understanding of the importance and mechanisms involved in cost allocation in accounting and management contexts.
Related questions
Consider the Following Statements About Support Department Costs ...
Consider the Following Statements About the Two-Stage Cost Allocation Process ...
The Mutual Provision of Service Between Support Departments Is Called ...
Consider the Following Statements About Support Department Cost Allocations ...
Process by Which Factory Overhead Is Assigned to a Cost ...