An Assigned Indirect Cost Differs from an Allocated Indirect Cost

Multiple Choice

An assigned indirect cost differs from an allocated indirect cost in that:

A) An assigned cost can be attached to a cost object by way of an estimate, while the amount of an allocated cost attached to an object is entirely arbitrary.
B) Assigned costs are traceable; allocated costs are not.
C) Assigned costs can always be classified as manufacturing, while allocated costs are always associated with selling and administration.
D) Appropriate cost allocations always improve costing accuracy, unlike the estimates used to assign costs.