Which of the Following Is NOT a Reason That the Organization

question 73

Multiple Choice

Which of the following is NOT a reason that the Organization of the Petroleum Exporting Countries was more successful at affecting the price of oil than other commodity cartels?

• A)There are a small number of countries with significant oil reserves.
• B)Many oil-producing countries have cultural ties to one another.
• C)Members were able to strictly enforce compliance with the organization's policies.
• D)There are few alternative sources of energy to substitute for oil.

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Definitions:

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made.

Departmental Overhead Rate

This is a method of allocating overhead costs to specific departments based on their respective proportions of an allocation base, such as machine hours or labor hours.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate product cost.

Overhead Cost Allocation

The process of distributing indirect costs to various cost objects like products, projects, or departments.