QUIZ 3

Course: Cost Accounting (ECON328) Total Marks: [ /20]

Name: Sidad Ibrahim Hassan Marks [ /10]
Date: ____12/11/2020________________
Note:

 Read prompts carefully, write answer in your own words.

 Answers must be minimum five-sentence paragraphs.
 Cheating/plagiarizing earns zero (follow university policies)

QUESTION NO 1: Attempt the questions (MARKS 10)

a) Identify and explain one chosen Cost Object in your assigned company. (5 marks)

The chosen cost objects of Hasbro Company are its products .For example, Disney's Frozen 2 is
one of the products that can be assigned as a cost object to Hasbro Company, because Disney's Frozen 2
has measurable cost and also it can be traced, the company will be able to calculate the price for the
chosen product and the probability of getting the profit.

b) Identify and explain one direct traceable cost of your chosen Cost Object. (5 marks)

One direct traceable cost for the chosen cost object which is Disney's Frozen 2 is the labor cost
wages or the salaries that have been given to the workers who are working on the Disney's
Frozen 2 product. And the direct material’s costs are considered as one direct traceable to the
product.
QUESTION NO 2: Attempt the questions (MARKS 10)
c) Identify and explain one indirect allocated cost of your chosen Cost Object. (5 marks)

There are many indirect allocated costs to the product. One indirect allocated cost Disney’s
Frozen 2 product includes any labors who are no charge directly to the production or operation.
For example, those workers may be contract worker, consultancies or they are temporary or
seasonal employees.

d) Explain the purpose of identifying the direct costs of your chosen Cost Object. (5 marks)

The purpose for the chosen cost object is that direct cost will help the company to make

decision about the price for Disney’s Frozen 2 and also direct cost will show the minimum price

for Disney’s Frozen 2, and it also helps the manager to put the right price on the product and

control the price.