part 6 7 8 Question 6.1 For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts
part 6 7 8 Question 6.1 For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once. A - To provide information for economic decisions B - To motivate managers and other employees C - To measure income and assets for reports to external parties D - To justify costs or compute reimbursement amounts Required To encourage simpler product design To cost inventories for reporting on a company's tax return To encourage the sales department to focus on high-margin products To evaluate a make or buy decision To cost inventories for the balance sheet To decide whether to add or delete a product line To decide on an appropriate selling price for a special-order product To cost a product at a fair price for government contracts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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part 6 7 8
Question 6.1
For each item listed, select the appropriate purpose of cost allocation from the list below. A purpose may be used more than once.
A - To provide information for economic decisions
B - To motivate managers and other employees
C - To measure income and assets for reports to external parties
D - To justify costs or compute reimbursement amounts
Required
- To encourage simpler product design
- To cost inventories for reporting on a company's tax return
- To encourage the sales department to focus on high-margin products
- To evaluate a make or buy decision
- To cost inventories for the balance sheet
- To decide whether to add or delete a product line
- To decide on an appropriate selling price for a special-order product
- To cost a product at a fair price for government contracts
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