Which of the Following Steps Is Not Always Part of Allocating

question 96

Multiple Choice

Which of the following steps is not always part of allocating support department costs?

• A) Allocating costs to units of product or service
• B) Clarifying the purpose of the allocation
• C) Choosing an allocation base
• D) Assigning costs to cost pools

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Definitions:

Par Value

A nominal value assigned to a security by the issuer, often used to determine the minimum price of shares issued by a corporation.

Fair Value

The trading price of an asset or the funding needed to transfer a liability in a well-coordinated market move at the assessment point.

Voting Shares

Shares that give the shareholder the right to vote on important issues such as electing directors and approving mergers.