Which Purpose of Cost Allocation Is Used to Encourage Sales

question 52

Multiple Choice

Which purpose of cost allocation is used to encourage sales representatives to push high-margin products or services?

• 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

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Definitions:

Downsized

Having undergone a process where a company reduces its workforce to lower costs and improve efficiency, often resulting in layoffs.

Legal Equality

The principle that all individuals are equal before the law and have the same rights and obligations regardless of other personal traits.

Gay and Lesbian

Terms used to describe people who are romantically or sexually attracted to individuals of the same sex; often used in the broader context of the LGBTQ+ community.

Domestic-Partner Benefits

Employee benefits extended to domestic partners, similar to those offered to spouses, typically including health insurance, dental coverage, and family leave, recognizing nonmarital partnerships.