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

---

Definitions:

Oxygen Atom

The smallest particle of the element oxygen that retains its chemical properties, consisting of 8 protons, 8 neutrons, and 8 electrons.

Young Adult

An individual in the life stage following adolescence, typically ranging from late teens to early thirties, characterized by physical maturity and the pursuit of independence.

Mole

A unit in chemistry used to express amounts of a chemical substance, based on the number of atoms or molecules.

Molecular Weight

A measure of the mass of a molecule, calculated as the sum of the atomic masses of all atoms constituting the molecule.