Question

Cost allocation is:_____.A. the assignment of indirect costs to the chosen cost object B. the process of tracking both direct and indirect costs associated with a cost object C. the process of determining the opportunity cost of a cost object chosen D. made based on material acquisition document

Answer 1

Answer:

A. the assignment of indirect costs to the chosen cost object

Explanation:

Cost allocation is the assignment of indirect cost of the cost object. The indirect costs of the project are not directly attributable to the cost object. So, it requires some basis on which its assignment can be made to cost object. Overhead allocation is the example of cost allocation. So, the correct answer is A. the assignment of indirect costs to the chosen cost object.