Cost Tracing Is

question 147

Multiple Choice

Cost tracing is

• A)the assignment of direct costs to the chosen cost object.
• B)a function of cost allocation.
• C)the process of tracking both direct and indirect costs associated with a cost object.
• D)the process of determining the actual cost of the cost object.
• E)the assignment of both direct and indirect costs associated with a cost object.

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Definitions:

Bankers' Acceptances

Short-term credit investments created by a non-financial firm and guaranteed by a bank.

Money Market Funds

Investment funds that invest in short-term debt securities with the aim of offering high liquidity with a low level of risk.

Institutional Funds

Investment pools that target large-scale investments, managed by professionals and accessible mainly to institutional investors.

Increased Disclosure

The practice of making more financial and operational information available to the public or regulatory bodies, aiming to improve transparency.