All of the following illustrate purposes for allocating costs to cost objects EXCEPT to:
A)provide information for economic decisions.
B)determine a selling price the market will bear.
C)motivate managers and employees.
D)measure income and assets for reporting to external parties.

Question

Quizplus · Accepted Answer

Allocating costs to cost objects is not done to determine a selling price the market will bear. This is because the market determines the selling price based on market forces such as supply and demand. The other choices all illustrate important purposes for allocating costs to cost objects.

All of the Following Illustrate Purposes for Allocating Costs to Cost