Why is some production costs must be assigned to products through an allocation process?

Some production costs must be assigned to products through an allocation process because these costs, such as overhead, are not directly traceable to specific products. Allocating these costs ensures a more accurate reflection of the total cost of production, which is essential for pricing decisions and profitability analysis. This process also helps in assessing the performance of different products, enabling better resource management and strategic planning. Ultimately, it provides a clearer picture of product costs for financial reporting and decision-making.