Costing Systems Want to Measure the Full Cost of a Cost

question 60

Multiple Choice

Costing systems want to measure the full cost of a cost object.What is full cost?

• A) Total indirect costs plus direct costs.
• B) Allocated indirect costs plus unallocated indirect costs.
• C) Direct cost plus allocated indirect costs.
• D) All costs added together.

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Definitions:

Travel Time

The duration taken to move from one location to another.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment and financial instability.

Transcontinental Railroads

Railroads that extend across a continent, linking coasts and facilitating trade and travel.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock to produce food and raw materials.