Cost Pools Should Be Charged to Responsibility Centers by Using

question 77

Multiple Choice

Cost pools should be charged to responsibility centers by using:

• A) budgeted amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.
• B) budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
• C) actual amounts of allocation bases because the cost allocation to one responsibility center should influence the allocations to others.
• D) actual amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others.
• E) some other approach.

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Definitions:

Buying Center Culture

Refers to the collective behaviors, norms, and decision-making processes of a group involved in organizational purchasing decisions.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining the terms of employment, wages, and workplace policies.

Straight Rebuys

Purchasing transactions where a buyer reorders an existing product or service from the past without seeking new suppliers.

B2B Buying

The process by which one business purchases goods or services from another business for use in its operations or for resale.