Which of the Following Factors Indicates a Higher Likelihood for Bid

question 31

Multiple Choice

Which of the following factors indicates a higher likelihood for bid rigging to occur?

• A) more competitors
• B) new competitors
• C) businesses submit bids at different times
• D) standardized products or services

---

Definitions:

Support Department Allocations

The distribution of costs from support departments to producing departments based on the level of service used.

Cost Driver

A factor that causes the costs of an activity to increase or decrease.

Sequential Method

A cost allocation technique that processes cost pools in a pre-determined order, allocating costs to one cost object before moving on to the next.

Support Department Allocations

The process of attributing a portion of support (or indirect) department costs to the producing departments within an organization, based on agreed-upon criteria.