The process of assigning costs to cost objects that involve the use of a surrogate, rather than direct measures Period Costs O Relevant Costs Opportunity Cost O Product Costs O Sunk Cost Cost Object O Cost Allocation Indirect Costs 10 Can be anything that we consider measuring its cost. It can be a product, a service, a department or anything that requires measuring the cost Sunk Cost Period Costs Product Costs Indirect costs Relevant Costs Opportunity cost Cost Object Direct Costs