The Following Conditions with Departmental Indirect-Cost Rates Will Result in Allocation

question 130

Multiple Choice

The following conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except:

• A) a single activity accounts for a sizable portion of the costs of the department
• B) Significant costs are incurred on different activities within a department
• C) several activities cause a sizable portion of the costs of the department
• D) significant costs are incurred for different activities with different cost -allocation bases within a department

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Definitions:

Explicit Ground Rules

Clearly defined and communicated guidelines or policies intended to set expectations and govern behavior in a specific context.

Outcomes

The results or effects produced by an action, process, or operation, often measured to assess effectiveness.

Procedural Messages

Communications that give instructions or explain how to complete a task or process.

Assignments

Tasks or projects given to individuals or groups as part of their study, work, or duties.