Advantages of Using Budgeted Values to Calculate Support Department Cost

question 63

Multiple Choice

Advantages of using budgeted values to calculate support department cost allocation rates include:
I. Managers know support department costs in advance
II. Managers are motivated to use support department services efficiently
III. Allocated support costs for the period are not affected by actual usage so managers have little incentive to minimize the use of support services

• A) I and II only
• B) I and III only
• C) II and III only
• D) I, II, and III

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Definitions:

Innermost Layer

The deepest layer within a structure or object, often referring to the inner layer of bodily organs or the Earth.

Equilibrium Receptors

Sensory receptors that help maintain balance and spatial orientation by detecting changes in position or acceleration.

Semicircular Canals

Three looping structures in the inner ear that are instrumental in maintaining balance by sensing rotational movements of the head.

Accommodation

The ability of the lens to change shape, allowing the eye to focus images of objects that are near or far away.