Which Is Not a Reason for Allocating Internal Costs to Cost

question 20

Multiple Choice

Which is not a reason for allocating internal costs to cost objects?

• A)Managers should be charged for benefits received by departments (or products) under their control
• B)US GAAP requires allocation of factory overheads
• C)To determine the selling price of products
• D)To determine the amount to be reimbursed under a cost-reimbursement contract
• E)All of the above are reasons for allocating internal costs to cost objects

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Definitions:

Coch and French

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Venture

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Vroom's model

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