One of the main objectives of cost allocation is to motivate managers.

Question

Quizplus · Accepted Answer

Cost allocation can motivate managers by assigning the costs of resources or activities to those responsible for them, which encourages efficient use of those resources and activities. By knowing the costs that are assigned to them, managers are incentivized to monitor the costs they incur and make decisions that will result in lower costs and increased profitability.

One of the Main Objectives of Cost Allocation Is to Motivate