Which of the following illustrates a purpose for allocating costs to cost objects?
A)to provide information for economic decisions
B)to reduce competition
C)to determine employee benefit costs
D)to defer income and reduce taxes payable
E)to evaluate managers and employees

Question

Quizplus · Accepted Answer

Allocating costs to cost objects provides information for economic decisions, such as pricing decisions, determining product profitability, and identifying areas for cost reduction.

Which of the Following Illustrates a Purpose for Allocating Costs