The Direct Method of Departmental Cost Allocation Ignores

question 44

Multiple Choice

The direct method of departmental cost allocation ignores:

• A)The managers' bias.
• B)Accrual accounting.
• C)Tax implications.
• D)Long-term implications.
• E)Reciprocal flows.

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural groups and organizations, especially for developing the cultural dimensions theory.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty, favoring clear rules and stability.

Individualism-Collectivism

A dimension of cultural variation that reflects the degree to which a society emphasizes individual goals and self-expression versus group goals and interdependence.

Masculinity-Femininity

A dimension of culture that reflects the distribution of emotional roles between the genders; it contrasts competitiveness versus care and quality of life.