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  3. Study Set
    Cost Accounting Study Set 1
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    Exam 14: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
  5. Question
    Which Purpose of Cost Allocation Is Used to Cost Products
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Which Purpose of Cost Allocation Is Used to Cost Products

Question 131

Question 131

Multiple Choice

Which purpose of cost allocation is used to cost products at a "fair" price?


A) to provide information for economic decisions
B) to motivate managers and other employees
C) to justify costs or compute reimbursement
D) to measure income and assets for reporting to external parties

Correct Answer:

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