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:

Benefits

Advantages or gains that are derived from a specific action, policy, or product, including intangible and tangible outcomes.

Excludable

A characteristic of a good or service that means it is possible to prevent people who have not paid for it from having access to it.

National Defense

The protection and defense of a country's interests, territories, and citizens, usually handled by the military and defense agencies.

Consumption

The act of using goods and services to satisfy human wants or needs, a primary activity analyzed in consumer behavior and economics.