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Paul [167]
2 years ago
11

Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management account

ant will:
Business
1 answer:
VashaNatasha [74]2 years ago
7 0

Since the indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management accountant will assign them by means of cost allocation.

<h3>What is the indirect cost?</h3>

The cost that is not directly related to the manufacturing process but plays a significant role in business is referred to as an indirect cost. It includes rent, salaries, office expenses, administration expenses, stationery, and so on.

The distribution of a single expense among numerous organizations, departments, or cost centers is known as cost allocation. It facilitates decision-making, waste reduction, and product pricing for businesses.

Learn more about cost allocation, here:

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