When Actual Cost-Allocation Rates Are Used, Managers of the Supplier

question 86

True/False

When actual cost-allocation rates are used, managers of the supplier division are motivated to improve efficiency.

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Definitions:

Special Revenue Fund

A fund used by governments to account for revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Decrease in Financial Resources

A reduction in the amount of money, assets, or other financial means available to an individual or organization.

General Fund

A central and primary operating fund of a government, covering general operating expenses and services.

Accounting Records

Documentation and books that record all of the financial transactions of a business.