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Which of the following statements is (are) false regarding cost allocations and product costing? (A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler. (B) In general, indirect costs are assigned, while direct costs are allocated.

User Erdeszt
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Answer:

(A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.

(B) In general, indirect costs are assigned, while direct costs are allocated.

Both of the statements are false regarding cost allocations and product costing.

Product cost are known as the costs that are incurred to make up a commodity. These costs include labor, materials, supplies, and overhead. Cost allocation is referred to as the distribution of a cost to respective objects such as products .

User Dsf
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