Which Cost Assignment Method Would Likely Assign the Cost of an Assembly-Line

question 120

Multiple Choice

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

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

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Definitions:

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.

Net Working Capital Turnover

A ratio that measures how effectively a company uses its net working capital to generate sales.

Sales

The total revenue a company earns from selling goods or services over a specific period.