Which of the Following Must Be Present in Order to Initiate

question 84

Multiple Choice

Which of the following must be present in order to initiate the decision-making process?

• A)plenty of time
• B)pressure to act
• C)a lack of authority
• D)a lack of resources
• E)environmental certainty

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Definitions:

Cost Pool

A collection of indirect costs grouped together, typically for the purpose of allocating them to different products, services, or departments.

ABC

Activity-Based Costing; a method of assigning overhead and indirect costs to specific products or projects based on their use of activities.

Activity

Any action or operation within a business that incurs costs or generates revenues.

Plantwide Overhead Rate

An overhead allocation rate that applies uniformly across an entire manufacturing plant, instead of being divided by department or activity.