WST Corporation Uses Actual Amounts to Calculate Support Department Cost

question 99

Multiple Choice

WST Corporation uses actual amounts to calculate support department cost allocation rates. A disadvantage of this practice is:

• A) Managers are held responsible for actual usage.
• B) Support charges are known in advance by managers.
• C) If one department uses much less of a support department's services than others, the support charge to remaining departments will increase to compensate.
• D) Managers cannot measure the value of support services used.

Appreciate the implications of macroeconomic forecasts on investment decisions.

Comprehend the factors contributing to gross domestic product (GDP) and its significance in economic analysis.

Understand the relationship between interest rates, consumer spending, and business investment.

Grasp the principles of supply and demand shocks in economics.

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Definitions:

Angiotensinogen

A glycoprotein produced by the liver that is the precursor to angiotensin, playing a key role in blood pressure regulation.

Angiotensin I

Peptide derived when renin acts on angiotensinogen.

Renin

An enzyme secreted by the kidneys that plays a crucial role in the body's regulation of blood pressure.

Angiotensin II

A peptide hormone that causes blood vessels to constrict and blood pressure to increase, part of a vital mechanism regulating blood pressure.