Which of the Following Would Be Considered the Biggest Advantage

question 76

Multiple Choice

Which of the following would be considered the biggest advantage of using practical capacity to allocate costs?

• A) focuses the user's division with the costs of overused capacity
• B) never causes over or under-allocated overhead
• C) burdens the user divisions with the costs of unused capacity
• D) focuses management's attention on unused capacity

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Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a U.S. federal law that established sweeping auditing and financial regulations for public companies, to protect investors from fraudulent financial reporting.

Felony

A serious crime, usually punishable by imprisonment for more than one year or by death.

Proper Records

Maintaining accurate and complete documentation of all transactions and operations in business, necessary for compliance and auditing purposes.

Criminally Liable

The legal responsibility one holds for committing an act that is prohibited by law, potentially resulting in criminal prosecution and penalties.