Sally Likes Jim Twice as Much as She Likes Bob

question 72

Multiple Choice

Sally likes Jim twice as much as she likes Bob. This is an example of:

• A)ordinal preferences.
• B)cardinal preferences.
• C)transitivity.
• D)diminishing marginal utility.

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.

Cost Pool

A grouping of individual costs, typically by department or service, from which cost allocations are made to products or services.

Responsibility Centre

A business segment or department for which a manager has authority and responsibility for certain activities, performance, and outcomes.

Allocation Base

A criterion or standard used to distribute overhead costs among various cost objects, such as products or projects.