Question

A cost system determines the cost of a cost object by:

a) Accumulating and then assigning costs
b) Accumulating costs
c) Assigning and then accumulating costs
d) Assigning costse) None of the above

Answer 1

a) Accumulating and then assigning costs

Step-by-step explanation:

A cost system is a system put in place by management to monitor costs incurred by an entity or cost object. A cost system is a combination of related subsystems which monitors, control and report costs information. In determining the cost of an object a cost system accumulates costs before assigning to cost units.