Question: Why is it important to classify costs into a cost hierarchy? Question content area bottom Part 1 A. It is important to classify costs into

Why is it important to classify costs into a cost hierarchy? Question content area bottom Part 1 A. It is important to classify costs into a cost hierarchy because costs in different cost pools relate to only one cost-allocation base and cost-allocation bases are always unit-level. Classifying costs into a cost hierarchy allows managers to spread costs evenly across all units. B. It is important to classify costs into a cost hierarchy because it allows managers to evaluate the importance of costs in the manufacturing process. If costs were not classified into a cost hierarchy, managers would be unable to assess the importance of each cost incurred in manufacturing the product. C. It is important to classify costs into a cost hierarchy because although costs in different cost pools relate to different cost-allocation bases, all cost-allocation bases are unit-level. Classifying costs into a cost hierarchy allows managers to spread costs evenly across all units. D. It is important to classify costs into a cost hierarchy because costs in different cost pools relate to different cost-allocation bases and not all cost-allocation bases are unit level. If costs were not classified into a cost hierarchy, the alternative would be to consider all

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