If a Cost Is Incurred Specifically for a Segment of an Organization

question 44

Multiple Choice

If a cost is incurred specifically for a segment of an organization, it is referred to as

• A)a common cost.
• B)a traceable cost.
• C)an allocated cost.
• D)an unavoidable cost.

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Definitions:

Accuracy

The extent to which the outcome of a measurement, computation, or detail agrees with the true value or an established norm.

Depreciation Policy

A specific method or approach a company uses to allocate the cost of a tangible asset over its useful life.

Underground Storage

Facilities used for the storage of goods, valuables, or commodities below the earth's surface.

Market Value

The existing value at which a service or asset may be sold or bought within a market environment.