Which Purpose of Cost Allocation Usually Dominates Most Business Situations

question 32

Multiple Choice

Which purpose of cost allocation usually dominates most business situations?

• A)to justify costs or obtain reimbursement
• B)to compute income and asset valuations for financial reporting
• C)to give feedback for performance evaluation
• D)to predict the economic effects of strategic and operational control decisions

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Definitions:

Human Capital

The skills, knowledge, and experiences possessed by an individual that can be used to produce economic value.

Skills

The abilities and expertise that individuals acquire through learning and experience, which enable them to perform tasks effectively.

Abilities

The natural or acquired skills and talents that individuals possess.

Behaviours

The range of actions and mannerisms made by individuals or organisms in conjunction with themselves, others, or the environment.