Which purpose of cost allocation is used to cost inventories for reporting to tax authorities?
A)to provide information for economic decisions
B)to motivate managers and other employees
C)to justify costs or compute reimbursement
D)to measure income and assets for reporting to external parties

Question

Quizplus · Accepted Answer

The purpose of cost allocation used to cost inventories for reporting to tax authorities is to measure income and assets for reporting to external parties, which includes tax authorities.

Which Purpose of Cost Allocation Is Used to Cost Inventories