Costs are allocated for all the following purposes except to _____.
A)predict the economic effects of planning and control decisions
B)obtain reimbursement
C)determine inventory levels
D)compute income and asset valuation

Question

Quizplus · Accepted Answer

While costs may be used to inform decisions about inventory levels (such as determining re-order points or safety stock), costs are not allocated for the sole purpose of determining inventory levels. Costs are allocated for the other three purposes listed: predicting economic effects, obtaining reimbursement, and computing income and asset valuation.

Costs Are Allocated for All the Following Purposes Except to _____