When Flooding Occurs Along a River,as You Go Farther Downstream

question 45

Multiple Choice

When flooding occurs along a river,as you go farther downstream _________________.

• A)the flooding gets worse as water piles up
• B)the flooding gets less severe as water spreads out in time and space
• C)the flooding is the same because the amount of water is the same

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Definitions:

Allocation Base

It's a measure used to distribute indirect costs to different cost objects, such as products or services.

Departmental Cost Pools

Aggregations of all costs related to a specific department within a company, used in allocating costs to products or services.

Overhead Allocation Rates

A rate used to distribute overhead costs to products or services based on a predetermined formula, such as the amount of direct labor hours or machine hours used.

Departmental Overhead Rates

The allocation of indirect costs to specific departments based on relevant activity bases, to accurately reflect the costs incurred by each department.