____ Is (Are) a Method of Allocating Service Department Costs

question 52

Multiple Choice

____ is (are) a method of allocating service department costs that gives partial recognition to interdepartmental services by using a methodology that allocates service department costs sequentially both to the remaining service departments and the producing departments.

• A)The direct method
• B)The step method
• C)The linear algebra method
• D)The direct and step methods

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Definitions:

Numeraire

A standard unit of measurement in economics used to represent prices or values of other goods in terms of this unit.

Utility Function

A mathematical representation that attaches a level of utility (satisfaction) to each possible basket of goods, allowing the ranking of these baskets from least to most preferred.

Edgeworth Box

A diagram used in economics to show various distributions of resources and to analyze competitive equilibria between two agents with fixed resources.

Contract Curve

In microeconomics, it represents the set of optimal allocations of resources between two or more parties from an initial situation.