When Actual Cost-Allocations Rates Are Used, Which of the Following

question 74

Multiple Choice

When actual cost-allocations rates are used, which of the following would be true?

• A) user divisions pay for costs that exceed budgeted amounts
• B) managers of the supplier division are motivated to improve efficiency
• C) user divisions are unaware of the allocated amounts until the end of the budget period
• D) managers know with certainty the rates to be used in that budget period

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Definitions:

Char

Partially burnt organic material or the process of partial combustion that leaves a substance with increased carbon content.

Gas Chromatography Injector

A component of a gas chromatography system that introduces the sample into the flow path of the carrier gas.

Vaporized

Turned into vapor, typically through the application of heat, changing from a liquid or solid state into a gaseous state.

Gas Chromatograph

A gas chromatograph is an analytical instrument used to separate, analyze, and identify compounds in a gaseous sample based on their different boiling points.