Which of the Following Is True of Assigning Costs to Cost

question 73

Multiple Choice

Which of the following is true of assigning costs to cost objects?

• A) Assigning costs to cost objects typically is more difficult than cost accumulation.
• B) Assigning costs to cost objects can be accomplished in a number of ways.
• C) The choice of a method for assigning costs to cost objects depends on a number of factors, such as the need for accuracy.
• D) All of these are true.

---

Definitions:

Machine-Hours

A measure of the amount of time a machine is operated in the production process, often used in costing and budgeting.

Predetermined Overhead Rate

A rate calculated before an accounting period begins, used to allocate manufacturing overhead to individual jobs or units based on a consistent measure, such as direct labor hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, often used as a basis for allocating costs to products.

Machine-Hours

A measure of production time, reflecting the total hours that machinery is operational during a specific period.