When Using the Step-Down Method What Is an Appropriate Method

question 41

Multiple Choice

When using the step-down method what is an appropriate method to rank the cost pools?

• A) From the cost pool with the lowest budgeted costs to the cost pool with the highest budgeted costs
• B) From management's intuitive determination which can be based on a variety of factors
• C) From the cost pool with the fewest employees to the cost pool with the most employees
• D) All of these are acceptable methods as long as they are applied consistently

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Definitions:

Nuts

Specifically, types of fruit composed of a hard shell and a seed, which are generally rich in nutrients.

Berries

Small, juicy fruits with a high seed content, often colorful and consumed as food; includes strawberries, blueberries, raspberries, and many others.

Utility Function

A mathematical representation of how different quantities of goods or services generate satisfaction or utility for a consumer.

Berries

Compact, moist fruits typically suitable for eating, featuring a spherical shape, intense coloration, and flavors that span from sweet to acidic.