Which Purpose of Cost Allocation Is Used to Cost Products

question 131

Multiple Choice

Which purpose of cost allocation is used to cost products at a "fair" price?

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

---

Definitions:

Human Resources Management

The strategic approach to the effective management of people in an organization to help the business gain a competitive advantage, including staffing, training, performance management, and benefits administration.

Quit Rate

A measure of the rate at which employees voluntarily leave an organization, often used as an indicator of workplace satisfaction and morale.

Downsizing Strategies

Strategies employed by organizations to reduce the scale and scope of their operations, often to cut costs or realign focus.

Short-term Reaction

An immediate response or adjustment made in response to a specific event or situation, often temporary in nature.