Which of the Following Best Describes the Term Assigning Costs

question 80

Multiple Choice

Which of the following best describes the term assigning costs?

• A) the way costs are measured and recorded
• B) the way companies can tell what money was spent
• C) the benefit given up when one choice is made over another
• D) the allocation applied to a cost object using a reasonable method

---

Definitions:

Direct Costs

Expenses that can be directly traced to producing specific goods or services, such as materials and labor.

Indirect Costs

Costs that are not directly attributable to a specific project, product, or activity but are necessary for the general operation of a business.

Cost Approach

An evaluation method that estimates the value of an asset based on the cost to replace or reproduce it.

Ethical Companies

Businesses that operate in ways that are considered morally right, adhering to principles of fairness, honesty, and respect for people and the planet.