In multiple costing, why might different costing methods be used for different cost units? Question 8Answer a. To increase variable costs. b. To maximize revenue. c. To allocate costs more accurately. d. To eliminate all fixed costs.
The correct answer is:
c. To allocate costs more accurately.
Different costing methods may be used for different cost units to ensure that costs are allocated in a way that reflects the actual consumption of resources, leading to more accurate product costing and better decision-making.