Because This Allocation Method Recognizes That Service Departments Often Provide

question 30

Multiple Choice

Because this allocation method recognizes that service departments often provide each other with interdepartmental service, it is theoretically considered to be the most accurate method for allocating service department costs to production departments. This method is: (CMA adapted)

• A) Direct method.
• B) Variable method.
• C) Linear method.
• D) Reciprocal method.

Recognize the significance of scientific management and its practical applications in the workplace.

Distinguish between the different schools of management thought and their underlying assumptions regarding human behavior and motivation.

Comprehend the concept of bureaucracy, its characteristics, and its implications for organizational design and efficiency.

Appreciate the evolution of management thought from classical approaches to more contemporary theories including behavioral and systems approaches.

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Definitions:

Tax Revenues

The money that governments procure from tax collection.

Local Governments

Administrative bodies in smaller geographical areas within a country that govern at a level below that of the state or federal government.

Expenditures

Expenditures are the expenses incurred by individuals, businesses, or governments in paying for goods and services.

Benefits-received Principle

This principle suggests that individuals should pay taxes in proportion to the benefits they receive from government services.