The cost allocation base O A. are costs related to a particular cost object that cannot...

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Question

Answer 1

Answer #1

the cost allocation base is a systamatic way to link an indirect cost or group of indirect costs to cost object.

examples of cost allocation base are direct labour hours,machine hours,production runs etc..

indirect costs are cost related to a particular cost object that cannot be traced to that cost object directly.

a cost object is anything for which a measurement of costs is desired

cost pool is a grouping of individual indirect cost items.

Answer 2

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