Cost allocation is necessary for accurate income measurement.

Name: Cost allocation is necessary for accurate income measurement.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost allocation is necessary for accurate income measurement as it allows businesses to assign direct and indirect costs to specific products or services. This helps in determining the true profitability of each product or service, and hence, provides a more accurate picture of the overall income of a business.

Cost Allocation Is Necessary for Accurate Income Measurement