Author Question: Which of the following is a reason to gather data, associate revenues with each customer and develop ... (Read 28 times)

ec501234 · **on:** Mar 6, 2021

Question 1

Which of the following illustrates a purpose for allocating costs to cost objects?
◦ to provide information for cost-control and pricing decisions
◦ to provide information to customers
◦ to determine marginal cost
◦ to measure capital expenditure

Question 2

Which of the following is a reason to gather data, associate revenues with each customer and develop a system of allocating costs to each customer?
◦ GAAP requirements for external reporting including 10K disclosures
◦ to assure that highly profitable customers get the appropriate level of care and attention
◦ ABC systems cannot be implemented without customer-profitability reporting
◦ to assure that more resources are committed to loss-making customers in an attempt to retain all customers

Sweetkitty24130 · **Reply #1 on:** Mar 6, 2021

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