Full cost information
A)is required by GAAP for internal reporting purposes.
B)requires the allocation of indirect costs.
C)provides managers with cost information on uncontrollable costs.
D)treats all costs as fixed costs.

Question

Quizplus · Accepted Answer

Full cost information requires the allocation of indirect costs, which are costs that cannot be easily traced to a specific product or service. This information is important for decision-making purposes, such as pricing and determining profitability. While full cost information may be used for internal reporting purposes, it is not strictly required by GAAP (Generally Accepted Accounting Principles). Full cost information also includes both variable and fixed costs, not just fixed costs as stated in choice D. The information on uncontrollable costs would be found in a different type of cost information, such as standard costing or activity-based costing.

Full Cost Information