The correct answer is: A. cost application base
A cost application base is a foundation for assigning costs to cost objects. It is a systematic way of identifying and measuring the costs that are incurred in producing goods or services. The cost application base can be any job, customer, or product.
A cost application base is important because it allows businesses to accurately track their costs and make informed decisions about pricing, production, and marketing. By understanding the costs associated with each product or service, businesses can make sure that they are charging a fair price and that they are producing the right products or services for their customers.
The other options are incorrect because they do not accurately describe the situation in which a cost object has any job, customer, or product.
- B. sale application base is a foundation for assigning sales to cost objects. It is a systematic way of identifying and measuring the sales that are generated by each product or service.
- C. price application base is a foundation for assigning prices to cost objects. It is a systematic way of identifying and measuring the prices that are charged for each product or service.
- D. direct application base is a foundation for assigning direct costs to cost objects. Direct costs are costs that can be easily traced to a specific cost object.