5 Which purpose of cost allocation is used to decide on the selling price for a customized product or service? Select one: a. to motivate managers and other employees b. to justify costs c. to measure income and assets for reporting to external parties d. to provide information for economic decisions

5 Which purpose of cost allocation is used to decide on the selling price for a customized product or service? Select one: a. to motivate managers and other employees b. to justify costs c. to measure income and assets for reporting to external parties d. to provide information for economic decisions

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11Q: Why is it important to know the true cost for a product or service?

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