Question

Which of the following includes both traced direct costs and allocated indirect costs?

A) cost tracing
B) cost pools
C) cost assignments
D) cost allocations

Answer 1

The correct answer is D) cost allocations. Cost allocation involves assigning indirect costs to cost objects and includes both traced direct costs and allocated indirect costs.

Step-by-step explanation:

The correct answer is D) cost allocations. Cost allocation involves the process of assigning indirect costs to cost objects, such as products, services, or departments. It includes both traced direct costs, which are costs directly associated with a specific cost object, and allocated indirect costs, which are costs that are distributed among multiple cost objects based on a predetermined allocation method.