Which of the Following Is a Basic Guideline That Should

question 42

Multiple Choice

Which of the following is a basic guideline that should be followed when allocating support department costs?

• A)Actual costs should always be used for allocations.
• B)Budgeted costs,not actual costs,should be allocated.
• C)Service department costs should never be allocated at the beginning of the period.
• D)Producing department costs should never be allocated at the beginning of the period.

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Definitions:

Disposable Income

Income available to an individual or household after deducting income taxes and other mandatory charges.

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.

Level of Inventory

Indicates the quantity of goods or materials a company has in stock at a given time, a critical factor in supply chain and operations management.

Disposable Income

The amount of income left to an individual after taxes have been paid, available for spending and saving.