Which of the Following Is Not One of the Objectives

question 127

Multiple Choice

Which of the following is not one of the objectives of cost allocation?

• A) Motivate managers to exert a high-level of effort.
• B) Provide useful departmental and product costs.
• C) Identify production constraints.
• D) Provide the right incentive for managers to make decisions.

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Definitions:

Investment Opportunities

Potential placements of capital in projects or assets that are expected to yield returns or financial growth over time.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to present value future cash flows, or in other cases, the central bank's interest rate for banks.

Net Present Value

The contrast between the present-valued cash inflows and outflows over a determined period.

Working Capital

The gap between a business's current assets versus its current liabilities, reflecting its short-term solvency and efficiency in operations.