Which of the following is not a benefit of cost allocation?
A) Instilling responsibility for all costs of the company in division managers.
B) Constructing performance measures that may be more meaningful than contribution margins.
C) Relating indirect costs to contracts, jobs and products.
D) Additional bookkeeping costs incurred to provide cost allocation information.

Question

Quizplus · Accepted Answer

Cost allocation is intended to distribute costs for better decision-making and accountability, not to increase bookkeeping costs, which is not a benefit.

Which of the Following Is Not a Benefit of Cost