Which of the Following Statements Is False with Regards to Departmental

question 13

Multiple Choice

Which of the following statements is false with regards to departmental cost allocations?

• A) amounts allocated to departments will most likely differ depending on the cost allocation method used
• B) the total amount allocated among departments will differ in total depending on the cost allocation method used
• C) the reciprocal method is usually the most conceptually precise method because it considers mutual services provided among all support departments
• D) the step-down and direct methods are simple for managers to compute and understand relative to the reciprocal method

Recognize transitional expressions that indicate sequence or time.

Analyze stages of various processes and their purposes.

Interpret the structure of process paragraphs.

Learn how to prepare and execute a plan.

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Definitions:

NAICS

The North American Industry Classification System, a standard used by federal statistical agencies for classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

Buying Center

A group of individuals within an organization who are involved in making purchasing decisions.

Type Of Business

Refers to the classification of a business based on its activities, ownership structure, or scale of operations.

Organizational Buying Process

The process through which formal organizations determine the necessity for products and services to be purchased, and select, assess, and decide between different brands and providers.