When Allocating Indirect Production Costs to Cost Objects,which of the Following

question 106

Multiple Choice

When allocating indirect production costs to cost objects,which of the following is/are a cost-allocation base(s) ?

• A) some measure of input or output that determines the amount of cost to be allocated to a cost object
• B) a measure used to assign indirect costs to cost objects
• C) a measure used to assign direct costs to cost objects
• D) A and B

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Definitions:

Cumulative Lead Time

The total time required to manufacture and deliver a product, including all processes from raw materials to finished goods.

Assembly

The process of putting together various components or parts to build a finished product.

Procurement

The process of obtaining goods or services, typically for business purposes, which includes selecting suppliers, negotiating contracts, and strategic sourcing.