Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 1Q
To determine

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

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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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Chapter 7 Solutions

Cost Management

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Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License