Which of the following is not one of the objectives of cost allocation?
A)Motivate managers to exert a high-level of effort.
B)Provide useful departmental and product costs.
C)Identify production constraints.
D)Provide the right incentive for managers to make the right decisions.
E)Provide an appropriate basis for performance evaluation.

Question

Quizplus · Accepted Answer

The objective of cost allocation is not to identify production constraints. Rather, it is to provide useful departmental and product costs, provide an appropriate basis for performance evaluation, motivate managers to exert high-level effort, and provide the right incentive for managers to make the right decisions. Identifying production constraints is part of the process of identifying bottlenecks in the production process.

Which of the Following Is Not One of the Objectives