If a Department Identifies More Than One Cost Driver for Overhead

question 113

Multiple Choice

If a department identifies more than one cost driver for overhead costs, the department ideally should _____.

• A)put 80% of the cost into one pool and 20% into second pool
• B)select a single cost driver
• C)allocate 80% of the costs with 20% of the drivers
• D)create as many cost pools as there are cost drivers

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Definitions:

Behavioral Evolution

The study of how behavior changes over time in response to environmental pressures, driven by the process of natural selection.

Highly Stereotyped

describes behaviors, actions, or characteristics oversimplified and generalized across a group without individual differentiation.

Mechanistic

An approach in understanding phenomena that involves breaking down complex systems into simpler parts to explain how they work.

Rigidly Defined

Described or specified with strictness and inflexibility.