Costing - Study Mode
[#1136] Cost which remains unchanged, in proportion to level total volume of production is classified as
Correct Answer
(C) fixed cost
Explanation
Solution: Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.
[#1137] In accounting, cost which is predicted to be incurred or future cost is known as
Correct Answer
(D) budgeted cost
Explanation
Solution: In accounting, cost which is predicted to be incurred or future cost is known as budgeted cost. A budgeted cost is a forecasted future expense that the company is expected to incur in the future.
[#1138] Cost which is related to specific cost object and cannot be economically traceable is classified as
Correct Answer
(D) indirect cost
Explanation
Solution: Cost which is related to specific cost object and cannot be economically traceable is classified as indirect cost. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.
[#1139] Process of assigning indirect costs to any specific cost object is known as
Correct Answer
(C) cost allocation
Explanation
Solution: Process of assigning indirect costs to any specific cost object is known as cost allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.
[#1140] In accounting, resources sacrifice for achieving or fulfil specific objective is known as
Correct Answer
(D) cost
Explanation
Solution: In accounting, resources sacrifice for achieving or fulfil specific objective is known as cost. Cost is the monetary value that a company has spent in order to produce a product.