2. Cost accumulation is used to: A. Determine the cost of a particular cost obje

Question

2. Cost accumulation is used to: A. Determine the cost of a particular cost object. B. Identify and estimate opportunity costs C. Identify fixed and variable costs. D Set the selling price for a service Set the selling price for a 3. Select the false statement from the following. A. B. C. D. Only direct costs are traced to cost objects. The same cost may be assigned to more than one cost object. General, selling, A given cost can be driven by more than one cost driver. and administrative costs cannot be assigned to a cost object.

Explanation / Answer

2.Cost accumulation is used to determine the cost of a particular cost object.An entity may has several costs , cost accumulation begins with identifying the cost objects.Cost per object can de determined with the help of a cost driver. A cost driver has a cause-and-effect relationship with a cost object.

3.The answer is (C) i.e General , selling and administrative costs cannot be assigned to a cost project as we assign overheads using appropriate cost driver like direct labour hours in case of traditional costing or activity based costing.

2.Cost accumulation is used to determine the cost of a particular cost object.An entity may has several costs , cost accumulation begins with identifying the cost objects.Cost per object can de determined with the help of a cost driver. A cost driver has a cause-and-effect relationship with a cost object.

So the answer is (a)detemine the cost of a particular cost object

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