When a Support Department's Activities Are Not Fully Consumed by Other

question 15

Multiple Choice

When a support department's activities are not fully consumed by other departments (that is, the support department self-consumes some costs) :

• A)We ignore such self-consumption.
• B)Not allocating the self-consumption negatively affects the accuracy of allocations.
• C)We must allocate the self-consumption costs to line activities.
• D)A and B only.
• E)None of the above.

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Definitions:

Ethical Behavior

Conduct that is in accordance with accepted principles of right and wrong governing the conduct of a profession.

Bad Barrel

A metaphor implying that systemic issues within an organization or environment lead to unethical behaviour or corruption, not just individual 'bad apples'.

Corporate Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business organization.