To Allocate Corporate Costs to Divisions, the Ideal Situation Would

question 2

Multiple Choice

To allocate corporate costs to divisions, the ideal situation would be for the allocation base to ________.

• A) be an output unit-level base
• B) have the best cause-and-effect relationship with the costs
• C) combine administrative costs and human resource management costs
• D) allocate the fixed costs only

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Definitions:

Markov Analysis

A statistical method used to model and predict future states of a system or process based on its current state and known transition probabilities.

Reconciling Supply And Demand

The process of adjusting the supply of goods or services to meet consumer demand, aiming for market equilibrium.

Replacement Charting

A visual tool used in human resources planning that maps out potential internal candidates for future job openings.

Forecasting Labour Supply

The process of estimating the future availability of workers, based on factors like demographic changes, education levels, and economic trends.