Which statement best describes a main purpose of assigning costs to cost objects?
A) It provides information on why money was spent.
B) It records the historical events of the organization.
C) It allows management to incorporate products in marketing.
D) It facilitates service businesses in following financial regulations.

Question

Quizplus · Accepted Answer

Assigning costs to cost objects helps in understanding why money was spent by identifying the specific activities, products, or departments that incurred the costs.

Which Statement Best Describes a Main Purpose of Assigning Costs