Which of the Following General Statements About Divisions Is Not

question 32

Multiple Choice

Which of the following general statements about divisions is not correct -

• A)special journals and linked accounts are required for divisions
• B)you may change allocation amounts at any time before posting
• C)you may print journal reports with or without division allocations
• D)if costs cannot be allocated accurately there is no reason to keep divisions

---

Definitions:

Budgets

Financial plans that forecast future income, expenditure, and resource allocation, guiding organizational decision-making.

Overhead Volume Variance

A measure used in cost accounting to analyze the difference between the budgeted and actual volume of activity, influencing the fixed manufacturing overhead.

Standard Hours

The set number of hours that are expected to be worked, often used in manufacturing to estimate labor costs.

Selling Prices

The amounts at which goods or services are sold to customers, determined by factors like cost, market demand, and competition.