The reason for allocating indirect costs is:
A) to set product prices
B) to comply with external reporting requirements
C) to help with making decisions about which products to produce
D) all of the above

Question

Quizplus · Accepted Answer

Allocating indirect costs helps in setting product prices by ensuring that all costs are covered, it is necessary for external reporting requirements to accurately reflect the cost of production, and it aids in making decisions about which products to produce by showing the full cost associated with each product.

The Reason for Allocating Indirect Costs Is