Factory supervisory costs would be assigned to departments for
A)product-mix decisions.
B)pricing decisions.
C)performance evaluation purposes.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Factory supervisory costs are indirect costs that cannot be directly traced to a specific product or service. These costs are allocated to departments or cost centers for performance evaluation purposes so that the management can evaluate each department's efficiency and effectiveness. Assigning these costs to product-mix or pricing decisions cannot be justified as they are not directly related to those decisions. Therefore, option C is the best choice.

Factory Supervisory Costs Would Be Assigned to Departments for