Which Cost Assignment Method Would Likely Assign the Cost of Maintenance

question 89

Multiple Choice

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

• A)driver tracing
• B)direct tracing
• C)allocation
• D)arbitration

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.

Infinity

A concept in mathematics and physics that refers to a quantity without bound or end.

Unit Elastic

A situation where a percentage change in the price of a good causes an equal percentage change in the quantity demanded or supplied.

Total Revenue

The total amount of money received by a company from sales of goods or services, before any costs or expenses are subtracted.