To Identify Costs That Relate to a Specific Product,an Allocation

question 40

Multiple Choice

To identify costs that relate to a specific product,an allocation base should be chosen that

• A)does not have a cause-and-effect relationship.
• B)has a cause-and-effect relationship.
• C)considers variable costs but not fixed costs.
• D)considers direct material and direct labor but not manufacturing overhead.

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Definitions:

Leadership

The ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.

Coordination

The process of organizing people or groups so that they work together properly and well.

U.S. Office

typically refers to a workplace or building in the United States used for professional, commercial, or bureaucratic work.

Personnel Management

The administrative discipline of hiring and developing employees so that they become more valuable to the organization.