Since Indirect Cost Cannot Be Conveniently or Economically Traced Directly

question 84

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.

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Definitions:

Custom-Made

Refers to goods specifically designed and produced to meet the particular requirements of a customer.

Winter Coat

A garment designed for protection against cold weather, typically extending beyond the waist and incorporating insulating features.

Forced

Compelled or coerced action or decision, often against one's will.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the company's brand, customer base, and other non-physical assets.