The Following List Includes Descriptions of the Steps in the Six-Step

question 71

Multiple Choice

The following list includes descriptions of the steps in the six-step process to allocate support department costs to production departments. Which of the following descriptions is incorrectly paired to the step number?

• A)Step 1: Apply production department costs to products.
• B)Step 2: Select a cost driver for each department.
• C)Step 3: Determine the usage of the support department cost river by each department.
• D)Step 4: Determine the percentage usage of support department cost drivers by each department.

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Definitions:

Executive Information System

A digital dashboard that helps executives to make decisions by providing easy access to important business metrics and data.

Mainframe Computer

A large, powerful computer system used in complex applications for bulk data processing.

Storage Capacity

The volume or space available for storing goods or data in a warehouse, hard drive, or other storage systems.

Executive Support System

A type of management information system designed to facilitate and support the information and decision-making needs of senior executives.