Cost Allocation: Definition, Terms & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Identifying, accumulating, and assigning costs to a cost object is known as what?

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1. An item a company wants to separately assign a cost is known as what?

2. Which one is not a term or step in cost allocation?

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About This Quiz & Worksheet

Cost allocation helps you understand the true costs of operating a business. Take the quiz to see what you know about definitions, steps and goals related to the cost allocation process.

Quiz & Worksheet Goals

These assessments focus on:

  • Items that a company separately designates costs for
  • Steps in the cost allocation process
  • Gathering costs prior to assigning them

Skills Practiced

  • Knowledge application - use your understanding to select the term for identifying and assigning costs to certain items
  • Information recall - access your knowledge of the step in the cost allocation process that aims to evenly spread costs
  • Interpreting information - ensure that you can read information about gathering costs and interpret it correctly

Additional Learning

The lesson named Cost Allocation: Definition, Terms & Examples takes an in-depth look at this topic. Lesson objectives include:

  • Name the steps of cost allocation
  • Point out which step requires you to determine how you'll assign your costs
  • Understand cost allocation by studying a hypothetical example
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