Which of the Following Terms Indicate That Costs Are Not

question 105

Multiple Choice

Which of the following terms indicate that costs are not directly caused by the cost object?

• A)Allocated
• B)Assigned
• C)Common
• D)All of these ans choices are correct

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Definitions:

Cost Or Market

An accounting principle that values inventory at the lower of its original cost or its current market price to ensure inventory is not overstated on the balance sheet.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Realized Holding Gains

Gains recognized from the sale of an investment or asset that were previously unrealized.