Which of the Following Helps an Organization Focus on Minimizing

question 78

Multiple Choice

Which of the following helps an organization focus on minimizing any harmful effects it may have on the environment?

• A)Six Sigma
• B)ISO 9000
• C)ISO 14000
• D)total quality management (TQM)
• E)cannibalization

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Definitions:

Step-down Method

The step-down method is an accounting practice used to allocate costs among departments, beginning with the highest cost pool.

Allocation Base A

An allocation base is a measure or quantity, such as machine hours or labor costs, used to assign indirect costs to different products or services.

Allocation Base B

A criterion or standard used to distribute overhead costs among various cost objects.

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various cost objects based on a hierarchical sequence of allocation bases.