Which of the following purposes of cost allocation provides information for operational control in an organization?
A) to compute income and asset valuations for financial reports
B) to compute Cost of Goods Sold for financial reports
C) to determine the number of cost drivers for a product
D) to provide the desired motivation and to give feedback for performance evaluation

Question

Quizplus · Accepted Answer

Cost allocation for the purpose of providing the desired motivation and giving feedback for performance evaluation is directly related to operational control. This helps managers and employees understand how their actions affect costs and operational efficiency, thereby guiding decision-making and behavior towards organizational objectives.

Which of the Following Purposes of Cost Allocation Provides Information