Which of the Following Characteristics Is a Consequence of the Implementation

question 42

Multiple Choice

Which of the following characteristics is a consequence of the implementation of a plant-wide allocation rate?

• A)The uniqueness of individual departments is not reflected in the cost numbers.
• B)Allocations are first conducted among departments, and then aggregated for the plant as a whole.
• C)Downstream costs are not measured at all.
• D)Managers have absolutely no incentive to control costs.

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Definitions:

Mechanical Test

A method or procedure used to evaluate the mechanical properties of materials, components, or systems.

Liquidated Damages

The stipulation by the parties to a contract of the sum of money to be recovered by the aggrieved party in the event of a breach of the contract by the other party.

Consequential Damages

Losses that arise not directly from a breach of contract but as a foreseeable result of the breach, requiring compensation.

Express Condition

A clearly stated and explicit requirement within a contract that must be satisfied for contractual obligations to be fulfilled.