When Allocating Support Department Costs, Managers Must Identify Cost Pools

question 16

Multiple Choice

When allocating support department costs, managers must identify cost pools. The choice of cost pools is:

• A) Determined by generally accepted accounting principles
• B) Not influenced by the allocation base
• C) Influenced by the design of the accounting information system
• D) Not important, because all support department costs will eventually be allocated anyway

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Definitions:

Inventory of Rewards

A collection or list of potential rewards or incentives that can be offered to individuals or employees to motivate and recognize their contributions.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, introduced by B.F. Skinner.

Unpleasant Consequence

A negative result or effect that follows an action or decision, often serving as a deterrent for certain behaviors.

Punishment

The imposition of a penalty as a response to an offense or undesirable behavior, aiming to correct or deter such actions.