Which of the Following Is Not One of the Objectives

question 47

Multiple Choice

Which of the following is not one of the objectives of cost allocation?

• A)Motivate managers to exert a high-level of effort.
• B)Provide useful departmental and product costs.
• C)Identify production constraints.
• D)Provide the right incentive for managers to make the right decisions.
• E)Provide an appropriate basis for performance evaluation.

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Definitions:

Common Stock

A form of investment indicating a stake in a corporation, which bestows upon its owners the right to vote and receive a portion of the company's earnings through dividends.

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.

Days' Sales in Inventory

A financial ratio that shows the average number of days a company holds its inventory before selling it.