Which of the Following Is a Major Objective of Allocation

question 38

Multiple Choice

Which of the following is a major objective of allocation?

• A)to obtain a mutually agreeable price
• B)to compute product-line profitability
• C)to predict the economic effects of planning and control
• D)to calculate corporate profitability

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Definitions:

Assembly Method

A process in manufacturing where parts are put together to make a final product.

Marginal-Utility-To-Price Ratio

The comparison of the additional satisfaction obtained from consuming one more unit of a good to its cost.

Marginal Utility

The incremental pleasure or value received from consuming one more unit of a good or service.

Marginal Utility Schedules

Tables or graphs that show the relationship between the quantity of a good consumed and the utility (satisfaction) that is gained from each additional unit.