Which of the Following Illustrates a Purpose for Allocating Costs

question 61

Multiple Choice

Which of the following illustrates a purpose for allocating costs to cost objects?

• A)to provide information for economic decisions
• B)to reduce competition
• C)to determine employee benefit costs
• D)to defer income and reduce taxes payable
• E)to evaluate managers and employees

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Definitions:

Cost Drivers

Elements that cause a change in the cost of an activity, affecting the overall expense of producing a product or delivering a service.

Jeep Tours

An off-road adventure experience provided by tour operators where participants explore rough terrains using jeeps.

Colorado Rockies

A major mountain range in the western United States extending from the northernmost part of New Mexico to British Columbia in Canada.

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.