Question

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

a. driver tracing
b. direct tracing
c. allocation
d. arbitration

Answer 1

Direct tracing would assign the cost of an assembly-line supervisor to the assembly line, as these costs can be directly attributed to and identified with the cost object.

Step-by-step explanation:

The cost assignment method that would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object is direct tracing. Direct tracing is the process of identifying and assigning costs to a specific cost object that are directly attributable to that object. In the case of the assembly-line supervisor, their salary can be directly associated with the operation of the assembly line as they oversee its execution. Since the supervisor's work is exclusive to the assembly line, it's straightforward to trace this cost directly to the cost object without the need for any allocation method.