Which of the Following Companies Is Following a Policy with Respect

question 50

Multiple Choice

Which of the following companies is following a policy with respect to the costs of service departments that is not recommended?

• A) To charge operating departments with the depreciation of forklifts used at its central warehouse, Shalimar Electronics charges predetermined lump-sum amounts calculated on the basis of the long-term average use of the services provided by the warehouse to the various segments.
• B) Manhattan Electronics uses the sales revenue of its various divisions to allocate costs connected with the upkeep of its headquarters building.
• C) Rainier Industrial does not allow its service departments to pass on the costs of their inefficiencies to the operating departments.
• D) Golkonda Refinery separately allocates fixed and variable costs incurred by its service departments to its operating departments.

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Definitions:

Seals

Marine mammals within the Pinnipedia clade, known for their streamlined bodies and ability to live in coastal waters.

Heart Rate

The number of times a heart beats per minute, reflecting the cardiac activity of an organism.

Bronchial Constriction

The narrowing of the bronchi in the lungs due to the tightening of the surrounding smooth muscle, leading to breathing difficulties.

Pulmonary Emphysema

Pulmonary emphysema is a chronic respiratory disease characterized by the destruction of the air sacs in the lungs, leading to breathlessness.