Which Cost Assignment Method Would Likely Assign the Cost of Heating

question 213

Multiple Choice

Which cost assignment method would likely assign the cost of heating in a plant that makes chairs and go-carts when the chair product line is the cost object?

• A)driver tracing
• B)direct tracing
• C)allocation
• D)arbitration

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Definitions:

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another under the agreement that the property will be returned or otherwise disposed of according to the owner's instructions.

Accession

Accession is the act of agreeing to or adhering to an international treaty or the process of adding to one's possessions or territory.

Increase Value

To enhance the worth or price of something through improvements or through natural economic factors.

Diamond

A precious gemstone made of crystallized carbon, known for its extreme hardness and light-reflecting qualities.