Final answer:
Cost assignment involves allocating or assigning costs to specific products or services based on the resources used or consumed.
Step-by-step explanation:
The association of production costs with the units produced is referred to as cost assignment. Cost assignment involves allocating or assigning costs to specific products or services based on the resources used or consumed. This helps in determining the cost of producing each unit of output.
For example, in a manufacturing company, the cost of direct materials, direct labor, and manufacturing overhead can be assigned to individual units of products produced. This information is crucial for decision-making, such as pricing products or analyzing profitability.