Question

A cost allocation rule is the method or process used to assign the costs in the _________ to the ______________. A. cost allocation; cost poolB. cost pool; opportunity costC. cost object; cost poolD.cost pool; cost object

Answer 1

Answer:

Option D

Explanation:

Cost allocation is the process of accumulating the cost to different cost pools and then assigning these costs on cost driver basis to each cost object. This way of assigning the cost is on a much more fairer basis, using activiry based costing technique.