Which purpose of cost allocation is used to cost products at a "fair" price?
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

Question

Quizplus · Accepted Answer

Cost allocation to justify costs or compute reimbursement is used to ensure that products are priced fairly, especially in contexts where costs need to be justified for reimbursement purposes, such as in government contracts or regulated industries.

Which Purpose of Cost Allocation Is Used to Cost Products