Since the indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management accountant will assign them by means of cost allocation.
The cost that is not directly related to the manufacturing process but plays a significant role in business is referred to as an indirect cost. It includes rent, salaries, office expenses, administration expenses, stationery, and so on.
The distribution of a single expense among numerous organizations, departments, or cost centers is known as cost allocation. It facilitates decision-making, waste reduction, and product pricing for businesses.
Learn more about cost allocation, here:
https://brainly.com/question/15937115
#SPJ1
