In cost allocation, R&D costs are used to ________.
A) provide information for economic decisions
B) report to external parties when using generally accepted accounting principles
C) calculate costs of a government contract
D) calculate prime cost of a product

Question

Quizplus · Accepted Answer

R&D costs are used to provide information for economic decisions, such as pricing, product development, and investment decisions. They are not used to report to external parties when using generally accepted accounting principles, calculate costs of a government contract, or calculate prime cost of a product.

In Cost Allocation, R&D Costs Are Used to ________