Assume the Cost Object Is Customers

question 68

Multiple Choice

Assume the cost object is customers.It is important to directly trace or allocate costs associated with customer actions to ________ instead of ________.

• A)producing departments; service departments
• B)service departments; producing departments
• C)products; producing departments
• D)customers; producing departments

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Definitions:

Buyer in the Ordinary Course of Business

A purchaser who buys goods in good faith, without notice that the sale violates the rights of another party, in the usual and regular course of the seller’s business.

Bailee

An individual or entity that has been given temporary custody but not ownership of someone else's property.

Risk of Loss

The responsibility for accidental damage to goods or property, often discussed in the context of selling or shipping goods.

Negotiable Document of Title

A document that guarantees the delivery of goods and can be transferred by endorsement, making the holder the owner of the goods.