Which of the Following Illustrates a Purpose for Allocating Costs

question 95

Multiple Choice

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

• A)to motivate managers and employees
• B)to provide information to customers
• C)to determine a selling price the market will bear
• D)to measure liabilities

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Definitions:

Accounts

Financial records of an organization that represent transactions and their effects on its assets, liabilities, and equity.

Chart of Accounts

A structured list of all the accounts in a company’s general ledger, which records all financial transactions.

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.

Posting References

Identifiers used in accounting to link journal entries to the corresponding ledger accounts for audit trails and record-keeping accuracy.