The concepts of cost allocation that are used in manufacturing can also apply in:
A)Service and not-for-profit industries.
B)Service industries only.
C)Not-for-profit industries only.
D)Limited instances outside of manufacturing.
E)The concepts apply only in manufacturing.

Question

Quizplus · Accepted Answer

The concepts of cost allocation can be applied in service and not-for-profit industries as well. The process of allocating costs to products or services is important in determining the true cost of goods sold or services provided, in order to allocate resources efficiently and make informed decisions. This applies to all types of industries, including manufacturing, service, and not-for-profit.

The Concepts of Cost Allocation That Are Used in Manufacturing