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:

Insurance Policy

A contract between an insurer and policyholder specifying the claims the insurer is legally required to pay.

Co-insurance Clause

A provision in an insurance policy stating that the insurer and the insured will share losses covered by the policy in a specified ratio.

Fireproof

A property of material or construction that provides resistance to fire, preventing or delaying the spread of fire.

Insured

The individual or entity covered by an insurance policy, who is entitled to benefits in case of a covered loss.