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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

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

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1TIF: Ethics in Action The controller of Tri Con Global Systems Inc. has developed a new costing system...
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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

  1. To encourage simpler product design
  2. To cost inventories for reporting on a company's tax return
  3. To encourage the sales department to focus on high-margin products
  4. To evaluate a make or buy decision
  5. To cost inventories for the balance sheet
  6. To decide whether to add or delete a product line
  7. To decide on an appropriate selling price for a special-order product
  8. To cost a product at a fair price for government contracts

 

 

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