An Overhead Cost That Can Be Traced Directly to Either

question 32

Multiple Choice

An overhead cost that can be traced directly to either a service or production department:

• A)Is called a "flow through" cost.
• B)Requires less allocation effort.
• C)Is charged directly to that department.
• D)Must be variable.
• E)Must be fixed.

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Definitions:

Synergy

The creation of a whole greater than the sum of its parts.

Organizational Units

Subdivisions within a company or institution that specialize in specific functions or objectives.

Guideline

A rule or piece of advice that suggests how something should be done or what actions are most likely to achieve a specific goal.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes.