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:

Vertically Applied Forces

Forces that act perpendicular to the horizontal surface, such as gravitational forces acting on a structure or component.

Compressed Condition

The state of a material or object that has been compacted or squeezed, reducing its volume and changing its density.

Jounce

The most compressed condition of a spring. Literally bounce.

Spring

An elastic device used to store or suppress mechanical force. Springs are used in vehicle suspensions where they act to support the chassis and buffer it from road forces. Some examples of springs are single leaf, multiple leaf, torsion bar, rubber block, and air-filled.