Which Purpose of Cost Allocation Is Used to Decide on the Selling

question 157

Multiple Choice

Which purpose of cost allocation is used to decide on the selling price for a customized product or service?

• A)to provide information for economic decisions
• B)to motivate managers and other employees
• C)to justify costs
• D)to measure income and assets for reporting to external parties
• E)to compute reimbursement

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Definitions:

Abstract

A brief summary of a research article, thesis, review, or other document that outlines the main points.

Object Permanence

The realization in early childhood that entities persist even when they are out of sight, sound, or touch.

Cognitive Development

The process through which individuals acquire and evolve their learning, thinking, reasoning, and problem-solving capabilities from childhood through adulthood.

Emotional and Social Development

The process by which individuals learn to understand and manage emotions, establish and maintain relationships, and develop empathy and social skills.