When Using the Direct Allocation Method, a Cost Accountant Would

question 48

Multiple Choice

When using the direct allocation method, a cost accountant would ________.

• A) not allocate support department costs to other support departments
• B) use information about reciprocal services provided among support departments and therefore could generate inaccurate estimates of the cost of operating departments
• C) allocate complete reciprocated costs
• D) allocate support department costs to other support departments

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Definitions:

Procedural Memory

A type of long-term memory involved in the unconscious memory of skills and how to perform certain tasks.

Skiing

A winter sport involving the movement over snow with the help of skis attached to each foot.

Explicit

Clearly and directly expressed or demonstrated, leaving no room for confusion or ambiguity.

Procedural Memory

The aspect of long-term memory that enables people to perform tasks without conscious awareness of having learned them, such as riding a bike.