What is the role of cost determination in controlling costs in operating costing? Question 3Answer a. It helps identify cost units for services. b. It eliminates overhead costs. c. It sets the selling price of products. d. It calculates total production costs.
The correct answer is:
a. It helps identify cost units for services.
Cost determination plays a crucial role in operating costing by helping to identify and allocate costs to specific cost units, which is essential for effective cost control and management in service-oriented businesses.