Assume the Cost Object Is Customers

Multiple Choice

Assume the cost object is customers.Why should indirect costs associated with customers be allocated to customers instead of producing departments?

A) The allocation to customers would be based on production-related output measures that are related to the cause of customer-service costs.
B) The allocation to customers would be based on production-related output measures that are probably not related to the cause of customer-service costs.
C) The cost-allocation base cannot be determined.
D) Actual costs would be used instead of budgeted costs.