Question: Please explain completely: Why is it necessary to choose a cost object when categorizing costs as direct or indirect? Give an example of how the

Please explain completely:

  1. Why is it necessary to choose a cost object when categorizing costs as direct or indirect?
  2. Give an example of how the direct or indirect cost classification of a single item changes the choice of a different cost object!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

a. Why is it necessary to choose a cost object when categorizing costs as direct or indirect? b. Give an example of how the direct or indirect cost classification of a single item changes the choice...

Q:

a. Why is it necessary to choose a cost object when categorizing costs as direct or indirect? b. Give an example of how the direct or indirect cost classification of a single item changes the choice...

Q:

Assignment: Brief 2: Portal Corporation Purpose To assess your ability to: define and illustrate a cost object distinguish between direct costs and indirect costs explain variable costs and fixed...

Q:

Based on chapters 1,2 and 3 of the following textbook answer the attached questions Horngren, C.T., Datar, S.M., and Rajan, M. V. (2015). Cost Accounting: A Managerial Emphasis. New Jersey: Prentice...

Q:

1. An example of a production overhead would be: a. Material. b. Rent c. Labor cost. d. Supervisory cost 2. All such expenses which are incurred for creating and enhancing the demands for the...

Q:

Please let me know these multiple choices 1. _______ of a cost object are related to the distinct cost object and can betraced to it in a cost-effective way using manual or electronic documentation....

Q:

7.3 In estimating the cost of a cost object, how are direct costs and indirect costs assigned to the cost object? Using the NGOs involved in the tsunami relief efforts (described in the 'Real life'...

Q:

In estimating the cost of a cost object, how are direct costs and indirect costs assigned to the cost object? Using the NGOs involved in the tsunami relief efforts (described in the 'Real life'...

Q:

7.3 In estimating the cost of a cost object, how are direct costs and indirect costs assigned to the cost object? Using the NGOs involved in the tsunami relief efforts (described in the Real Life...

Q:

7.3 In estimating the cost of a cost object, how are direct costs and indirect costs assigned to the cost object? Using the NGOs involved in the tsunami relief efforts (described in the 'Real life...

Q:

A. What is the price of a zero-coupon bond with a par value of $10000 and a 10 year maturity, when investors expect a return of 6.5%? B. What would the price be if the economic outlook appears weaker...

Q:

If X is a random variable having the binomial distribution with the parameters n and , show that n X/n (1 X/n) is a biased estimator of the variance of X.

Q:

If the markets are efficient, then why is asset allocation still considered important? Can the following sentence be considered as the answer? "...because asset allocation should combine market...

Q:

10 Points C Write a function called "AddRows" that accepts two parameters: W1: a matrix of size 7x4 elements of type integer B1:a one dimensional array of size 4. For each column in W1, the function...