Describe the four objectives of the cost allocation’s strategic role.

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Answer 1

Question

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

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Answer 2

Question

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

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Answer 3

Question

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

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Answer 4

Question

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

Answer 6

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.

Answer 7

Chapter 7, Problem 1Q

To determine

Describe the four objectives of the cost allocation’s strategic role.

Answer 8

Expert Solution & Answer

Explanation of Solution

The four objectives of the cost allocation’s strategic role are:

To analyze the departmental and product costs accurately to act as a basis for cost efficiency evaluation of the departments and profitability of financial reporting, different products and tax compliance.
To motivate the managers to accomplish the goals of the management with high level of effort.
To encourage managers take decisions consistent with the objectives of management by providing the right incentives.
To ascertain the rewards for the managers based on their efforts, skills and efficiency in decision making.