Which Is Not a Reason for Allocating Internal Costs to Cost

question 8

Multiple Choice

Which is not a reason for allocating internal costs to cost objects?

• A)Managers should be charged for benefits received by departments (or products)under their control
• B)External financial reporting rules require allocation of factory overhead
• C)To determine the selling price of products
• D)To determine the amount to be reimbursed under a cost-reimbursement contract
• E)All of the above are reasons for allocating internal costs to cost objects

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