Which of the following is not a challenge to managers that allocate costs?
A)Assign inaccurate product costs.
B)Inaccurate product costs mislead managers about the profitability of products.
C)Managers will promote unprofitable products.
D)Managers deemphasize profitable products.
E)Assign accurate product costs.

Question

Quizplus · Accepted Answer

Assigning accurate product costs is not a challenge but rather an objective of cost allocation. Challenges include inaccuracies and the potential misinterpretation of product profitability, which can lead to promoting unprofitable products or de-emphasizing profitable ones.

Which of the Following Is Not a Challenge to Managers