Which purpose of cost allocation usually dominates most business situations?
A)to justify costs or obtain reimbursement
B)to compute income and asset valuations for financial reporting
C)to give feedback for performance evaluation
D)to predict the economic effects of strategic and operational control decisions

Question

Quizplus · Accepted Answer

In most business situations, the primary purpose of cost allocation is to compute income and asset valuations for financial reporting, as it is essential for preparing accurate financial statements.

Which Purpose of Cost Allocation Usually Dominates Most Business Situations