The Three Methods of Allocating Support Department Costs to Operating

question 60

True/False

The three methods of allocating support department costs to operating departments are called the direct method, the step down method and the proportional method.

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Definitions:

Act Utilitarianism

A form of utilitarianism that evaluates the morality of actions based on the amount of happiness they produce in the outcome.

Ethical Theory

Philosophical thinking about morality, encompassing principles and guidelines that dictate what is right and wrong behavior.

Ethical Relativism

The theory that moral values and judgments are ultimately dependent on the cultural, societal, or personal context.

Payroll Tax

Taxes imposed on employers and/or employees, calculated as a percentage of the salaries that employers pay their staff.