Why is it essential to use different costing methods in multiple costing? Question 1Answer a. To maximize revenue. b. To standardize production processes. c. To allocate costs more accurately to different cost units. d. To eliminate all fixed costs.
The correct answer is:
c. To allocate costs more accurately to different cost units.
Using different costing methods in multiple costing allows businesses to assign costs more precisely to various products or services, which can lead to better pricing, budgeting, and financial analysis.