When Using the Direct Method Why Would Companies Choose to Perform

question 1

Multiple Choice

When using the direct method why would companies choose to perform the allocation with predetermined rates?

• A)To better communicate the often-forgotten cost of support services to department managers
• B) To make the budgeting process easier for managers
• C) To influence a department manager's hiring policies
• D) To persuade company executives to cut costs

---

Definitions:

Addison Disease

A disorder that occurs when your body produces insufficient amounts of certain hormones produced by your adrenal glands, leading to symptoms such as weight loss, weakness, and low blood pressure.

Bronzing

The process of becoming bronze in color or appearance, often related to skin, metals, or effects of certain conditions.

Gonadotropic Hormones

Hormones that stimulate the activity of the gonads (testes and ovaries), including follicle-stimulating hormone (FSH) and luteinizing hormone (LH).

Ovaries

Female reproductive organs in which eggs (ova) are produced, along with the hormones estrogen and progesterone.