Which purpose of cost allocation is used to encourage sales representatives to push high-margin products or services?
A) to provide information for economic decisions
B) to motivate managers and other employees
C) to justify costs or compute reimbursement
D) to measure income and assets for reporting to external parties

Question

Quizplus · Accepted Answer

The purpose of cost allocation to motivate managers and other employees is used to encourage sales representatives to push high-margin products or services by providing incentives or bonuses based on the profitability of the products they sell.

Which Purpose of Cost Allocation Is Used to Encourage Sales