Preston Company Has Three Divisions

question 145

Multiple Choice

Preston Company has three divisions.The company should consider a cost to be a direct cost of a division if:

• A) It meets guidelines imposed by generally accepted accounting principles.
• B) It can be traced to a division in a cost-effective manner.
• C) It is a variable cost.
• D) It can be allocated to a division.

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Definitions:

Verbal Cues

Non-content aspects of spoken language such as tone, pace, and volume that communicate information or suggest meaning.

Closed-ended Question

A type of question that is designed to receive a specific, limited response, usually "yes" or "no."

Open-ended Question

A type of question that allows for a free-form response, encouraging a detailed and subjective answer.

Hypothetical Question

A question based on assumptions or imaginary scenarios, often used in legal contexts to explore potential outcomes or decisions.