One reason for assigning selling and distribution costs to products for analytical purposes is ________.
A) to justify a varied product-mix
B) that these costs should be included in the cost of goods sold in the income statement
C) to ensure that all costs are considered
D) that all direct costs must be assigned

Question

Quizplus · Accepted Answer

Assigning selling and distribution costs to products for analytical purposes ensures that all costs are considered, including those that go beyond the cost of goods sold. This helps in making informed decisions regarding pricing strategies, product mix, and overall profitability. While A and B may be valid reasons to consider these costs, they do not fully justify the need for assigning them for analytical purposes. Option D is incorrect as only direct costs need to be assigned, while selling and distribution costs are indirect costs.

One Reason for Assigning Selling and Distribution Costs to Products