Departments Are Often Used as Cost Pools When Allocating Support

question 120

Multiple Choice

Departments are often used as cost pools when allocating support department costs because

• A) Many organizations already accumulate costs by department
• B) Generally accepted accounting principles require it
• C) All departments have easily identifiable allocation bases
• D) U.S. income tax regulations require it

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Definitions:

Self-Enhancing Bias

is the tendency to overestimate one's own abilities or attributes and view oneself in an overly favorable light.

Self-Comparison Bias

The tendency to make favorable comparisons between oneself and others, which can lead to an inflated sense of self-esteem or competence.

Global Self-Esteem

Refers to the overall value that one places on oneself as a person, integrating beliefs and feelings from various aspects of self-concept into a single self-assessment.