Which of the Following Is Not a Benefit of Cost

question 18

Multiple Choice

Which of the following is not a benefit of cost allocation?

• A) Instilling responsibility for all costs of the company in division managers.
• B) Constructing performance measures that may be more meaningful than contribution margins.
• C) Relating indirect costs to contracts, jobs and products.
• D) Additional bookkeeping costs incurred to provide cost allocation information.

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Definitions:

T-bill Rate

The yield or interest rate paid by the U.S. government on its Treasury bills, which are short-term debt obligations.

Stock Price

The price at which a particular share of stock is bought or sold in the market.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price before the contract expires.