Examlex

Solved

The Terms "Cost Tracing" and "Cost Allocation" May Be Used

question 100

True/False

The terms "cost tracing" and "cost allocation" may be used interchangeably because they mean the same thing.


Definitions:

Machine-Hours

A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.

Molding

The process of shaping a pliable raw material by using a rigid frame or model called a mold.

Assembly

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

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.

Related Questions