Which is NOT a purpose of cost allocation?
A)Predict the economic effects of strategic and operational control decisions.
B)Obtain reimbursement.
C)Provide motivation to managers.
D)Identify cost drivers.

Question

Quizplus · Accepted Answer

Cost allocation is not primarily used to identify cost drivers; it is used to distribute costs among different departments or products for purposes like reimbursement, motivation, and predicting economic effects. Identifying cost drivers is a separate process.

Which Is NOT a Purpose of Cost Allocation