Question

The cost allocation base​ ________. A. is a systematic way to link an indirect cost or group of indirect costs to cost objects B. is a grouping of individual indirect cost items C. is anything for which a measurement of costs is desired D. are costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way

Answer 1

The correct answer is letter "A": is a systematic way to link an indirect cost or group of indirect costs to cost objects.

Step-by-step explanation:

Cost allocation is the method of assigning costs to cost objects. Cost objects are items or activities that are preferable to have their own costs allocated such as a product or a department within a firm. Cost allocation is a measure of profitability at the moment of evaluating a subsidiary. It is mainly used for financial reporting purposes.