Costs are allocated for all the following purposes EXCEPT to
A) predict the economic effects of planning and control decisions.
B) obtain desired motivation.
C) determine the sales volume.
D) compute income and asset valuation.

Question

Quizplus · Accepted Answer

Costs are not allocated to determine the sales volume. Sales volume is determined by market demand and pricing decisions. Costs are allocated for other purposes such as predicting the economic effects of planning and control decisions, obtaining desired motivation, and computing income and asset valuation.

Costs Are Allocated for All the Following Purposes EXCEPT to