Which of the following is not a reason that managers allocate overhead costs to products?
A)To provide information for decision making.
B)To apply direct labor and direct materials to products.
C)To promote efficient use of resources.
D)To comply with U.S.Generally Accepted Accounting Principles (GAAP).
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Allocating overhead costs to products helps in decision making, promotes efficient use of resources, and ensures compliance with GAAP. However, applying direct labor and direct materials to products is not a reason for allocating overhead costs, as these are direct costs associated with the production and are allocated separately from overhead costs.

Which of the Following Is Not a Reason That Managers