A PRIMARY reason for assigning selling and distribution costs to products for analytical purposes is:
A)that all indirect costs must be assigned.
B)that different processes,products and customers require different quantities of selling and distribution activities.
C)that controllers are required to assign all costs when valuing inventories.
D)to justify a varied product mix.

Question

Quizplus · Accepted Answer

Assigning selling and distribution costs to products allows for a better understanding of the true cost of producing and delivering each product, which can vary depending on the amount and type of selling and distribution activities required for each. This information can then be used to make informed decisions about product mix and pricing strategies. The other options are not accurate reasons for assigning selling and distribution costs to products.

A PRIMARY Reason for Assigning Selling and Distribution Costs to Products