The major objective(s) of allocations are
A)to motivate managers.
B)to compute product line profitability.
C)to value inventory.
D)all of the above.

Question

Quizplus · Accepted Answer

Allocations serve multiple objectives, including motivating managers by assigning costs to individual departments, computing product line profitability by allocating costs to specific products, and valuing inventory by assigning overhead costs to units of inventory. Therefore, the best choice is D, all of the above.

The Major Objective(s) of Allocations Are