A Rational and Systematic Allocation Base for Service Department Costs

question 118

Multiple Choice

A rational and systematic allocation base for service department costs should reflect the cost accountant's consideration of all of the following except

• A)the ability of revenue-producing departments to bear the allocated costs.
• B)the benefits received by the revenue-producing department from the service department.
• C)a causal relationship between factors in the revenue-producing department and costs incurred in the service department.
• D)all of the above are considerations.

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Definitions:

Silent Epidemic

A health condition or disease that spreads widely or affects a large number of people without receiving significant public attention or awareness.

Foster Child

A child who has been placed into a government or private agency's care because the original family is unable to provide adequate care.

Transracial Adoption

The adoption of a child that is of a different race than the adoptive parents, aimed at providing a loving home to children while also navigating cultural and identity issues.

Vicarious Parenthood

Experiencing the roles and responsibilities of parenting indirectly, such as through caring for a relative's or friend's child.