A Key Disincentive Effect of Departmental Cost Allocation Can Occur

question 51

Multiple Choice

A key disincentive effect of departmental cost allocation can occur when:

• A)allocated costs are less than external purchase costs.
• B)managers do not understand the incentives in the allocation base.
• C)the allocation base is actual usage.
• D)the allocation base is budgeted usage.
• E)the allocation base is greater than usage.

Understand the composition and calculation of the labor force and the unemployment rate.

Identify different types of unemployment and their causes.

Appreciate the complexities and multiple factors influencing economic cycles and stability.

Understand the significance and application of positive and negative reinforcement in the workplace.

---

Definitions:

Percent Rate

a rate that describes a portion of a hundred in finance, often related to interest or growth rates.

Portion

A part or segment of the whole, often expressed as a fraction or percentage.

Accurate

Describes information, measurements, or results that are exact, precise, and free from errors or mistakes.

Cent

A monetary unit equal to one hundredth of a larger unit, such as a dollar or euro.