Since Indirect Cost Cannot Be Conveniently or Economically Traced Directly

question 93

Multiple Choice

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

• A)Assign them by means of cost allocation.
• B)Assign them where needed.
• C)Assign them randomly to even out these costs.
• D)Not assign them at all.
• E)None of the above.

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Definitions:

Peristalsis

Peristalsis is the series of wave-like muscle contractions that move food through the digestive tract from the esophagus to the rectum.

Nasal Cavity

Cavity between the external nares and the pharynx. It is divided into two chambers by the nasal septum and is bounded inferiorly by the hard and soft palates.

Pylorus

The opening from the stomach into the duodenum, regulated by a sphincter that controls the passage of digested food.

Fundus

The upper part of an organ, often referred to in context with the stomach or uterus, opposite from the opening.