Tuesday, November 15, 2011

Which purpose of cost allocation is used to decide on the selling price for a customized product or service?

ACCOUNTING

Multiple Choice

Which purpose of cost allocation is used to decide on the selling price for a customized product or service?

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

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