The Objectives of Cost Allocation Are To

question 90

Multiple Choice

The objectives of cost allocation are to:

• A)Motivate, provide incentives, and determine fair rewards.
• B)Accurately define, divide and spread direct costs.
• C)Value, measure, and interpret cost data.
• D)Connect, communicate, and discern information.
• E)Define, refine, and re-define indirect costs.

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Definitions:

Debtor

An individual or entity that owes money or an obligation to another, the creditor.

Secured Party

A lender or creditor who has an interest, typically through a lien, in the collateral offered by a borrower or debtor to secure a loan or obligation.

Obligation

A legal or moral duty or responsibility one party has towards another.

Secured Party

A creditor or lender that holds a security interest in collateral to secure a debt.