What Term Is Used to Describe the Assignment of Direct

question 263

Multiple Choice

What term is used to describe the assignment of direct costs to a particular cost object?

• A)Assignment
• B)Allocation
• C)Accumulation
• D)Tracing

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Definitions:

Company-wide Profits

The total earnings of a company, taking into account all sources of income and expenses, across all departments and units.

Profit Centers

Divisions or sectors of a business that are directly responsible for generating its profits.

Corporate Executives

High-level officers within a corporation, responsible for making major corporate decisions and managing operations.

Division Revenues

The total income generated from the sales of goods or services by a specific division or segment of a larger company.