The Method of Distributing Service Department Costs to Production Departments

question 10

Multiple Choice

The method of distributing service department costs to production departments which makes no attempt to determine the extent to which one service department renders its services to another department is the:

• A)Direct distribution method.
• B)Sequential distribution method.
• C)Service department distribution method.
• D)Algebraic distribution method.

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Definitions:

Legitimate Power

Authority that is recognized and accepted by others within an organization due to a formal position or role.

Formal Authority

The power granted to an individual or organization by virtue of position or status, enabling them to enforce rules and make decisions.

Prerogatives

Special rights or privileges exclusively reserved for a particular person, group, or class.

Rational Persuasion

A method of influencing others through logical arguments and factual evidence to change beliefs, attitudes, or behaviors.