In a Costing System, ________

question 153

Multiple Choice

In a costing system, ________.

• A) cost tracing allocates indirect costs
• B) cost allocation assigns direct costs
• C) a cost-allocation base can be either financial or nonfinancial
• D) a cost object should be a product and not a department or a geographic territory

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Definitions:

Computerized Accounting System

Software used to manage and record accounting transactions, improving efficiency and accuracy.

ATM Withdrawals

Transactions where cash is taken out of a bank account using an Automated Teller Machine.

Depositor's Account

An account maintained by a depositor at a financial institution, reflecting the amount of funds deposited.

Uncollectible Check

A check that cannot be processed because the maker’s bank account has insufficient funds or the account is closed.