How Are Direct and Overhead Costs Assigned to Cost Objects $\begin{array}{llcc}\underline{\text {Direct Costs}}&\underline{\text { Overhead Costs}}\end{array}$

question 59

Multiple Choice

How are direct and overhead costs assigned to cost objects under activity based costing systems?
$\begin{array}{llcc}\underline{\text {Direct Costs}}&\underline{\text { Overhead Costs}}\end{array}$

a. $\begin{array}{ll}\text { Allocate } &\quad \text { Trace }\end{array}$


b. $\begin{array}{llcc} \text { Trace }&\quad\quad\text { Allocate }\end{array}$


c. $\begin{array}{llcc}\text { Allocate }&\quad\text { Allocate }\end{array}$


d. $\begin{array}{llcc}\text { Trace }&\quad\quad\text { Trace }\end{array}$

• A) A
• B) B
• C) C
• D) D

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Definitions:

Cosmetics Companies

Businesses that manufacture and sell beauty and personal care products intended to enhance or alter appearances.

High Quality

Describes products or services that meet or exceed predetermined standards of excellence.