____ Refers to the Assignment of Indirect Costs to Cost

question 24

Multiple Choice

____ refers to the assignment of indirect costs to cost objects.

• A) Allocation
• B) Direct tracing
• C) Physical observation
• D) Cost management

---

Definitions:

Marginal Tax Rates

The tax rate applicable to the last dollar of income earned, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Net Advantage to Leasing

This refers to the total financial benefits that a company might gain from leasing assets rather than purchasing them outright, taking into account tax advantages, cash flow, and risk factors.

CCA Rate

The Capital Cost Allowance (CCA) rate refers to the percentage rate at which a business can claim depreciation on certain property types for tax purposes in Canada.