Which of the Following Statements Explains the Major Difference Between

question 146

Multiple Choice

Which of the following statements explains the major difference between the sequential method and the direct method?

• A)Under the sequential method, the total support department costs to be allocated will also include any costs that were allocated to that support department from other support departments.
• B)Under the direct method, the total support department costs to be allocated will also include any costs that were allocated to that support department from other support departments.
• C)Under the sequential method, the total support department costs to be allocated will never include any costs that were allocated to that support department from other support departments.
• D)Under the sequential method, every support department receives costs allocated from every other support department.

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Definitions:

Inflation

The progression speed of the general price index for goods and services, diminishing the effective value of money.

Cost-Push Inflation

Rising costs of doing business push up prices.

Open-Market Operations

Activities undertaken by central banks to buy or sell government securities in the open market to influence the money supply and interest rates.

Aggregate Demand

The all-embracing pursuit of goods and services in an economy, calculated at a fixed overall price level and within a chosen time frame.