Which Purpose of Cost Allocation Is Used to Cost Inventories

question 121

Multiple Choice

Which purpose of cost allocation is used to cost inventories for reporting to tax authorities?

• 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

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Definitions:

Average Time

The mean period taken for a task or process to occur; calculated by summing the total time taken and dividing it by the number of occurrences or instances.

Customers

Individuals or entities that purchase goods or services from a business.

System

A set of interacting or interdependent components forming an integrated whole to serve a common purpose.

Average Number

The sum of values divided by the count of values, used to find the central or typical value in a set of numbers.