acct 302 ch 4 cost allocation terms
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Last updated 8:23 AM on 2/3/26
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5 Terms
1
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Cost driver
any factor, activity, or event that causes a change in the total cost of an activity, product or service
2
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cost pool
a grouping of individual indirect cost items
3
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cost tracing
the assigning of direct costs to the chosen cost object
4
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cost allocation
the assigning of indirect costs to the chosen cost object
5
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cost allocation base
a factor that links in a systematic way an indirect cost or group of indirect costs to a cost object
Note 
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