The concepts of cost allocation that are used in manufacturing can also apply in:
A)Service and not-for-profit industries.
B)Service industries.
C)Not-for-profit industries.
D)Limited instances outside of manufacturing.
E)The concepts apply only in manufacturing.

Question

Quizplus · Accepted Answer

Cost allocation concepts used in manufacturing are also applicable in service and not-for-profit industries, as these sectors also incur costs that need to be allocated to different departments, projects, or services for financial reporting, budgeting, and decision-making purposes.

The Concepts of Cost Allocation That Are Used in Manufacturing