Which of the following is not one of the objectives of cost allocation?
A)Motivate managers to exert a high-level of effort.
B)Provide useful departmental and product costs.
C)Identify production constraints.
D)Provide the right incentive for managers to make decisions.
E)Provide an appropriate basis for performance evaluation.

Question

Quizplus · Accepted Answer

Identifying production constraints is not one of the objectives of cost allocation. The other objectives listed, such as motivating managers, providing useful cost information, and providing incentives for decision making and performance evaluation, are all valid reasons for allocating costs.

Which of the Following Is Not One of the Objectives