If a Department Identifies More Than One Cost Driver for Overhead

question 36

Multiple Choice

If a department identifies more than one cost driver for overhead costs,the department ideally should ________.

• A)put 80 percent of the cost into one pool and 20 percent into a second pool
• B)select a single cost driver
• C)allocate 80 percent of the costs with 20% of the cost drivers
• D)create as many cost pools as there are cost drivers

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Definitions:

Conscious

Refers to being aware of one's own existence, sensations, thoughts, surroundings, and experiencing perceptions and emotions.

Unconscious

A part of the mind that houses thoughts, memories, and desires not within current conscious awareness but that nonetheless influence behaviors and emotions.

Superego

In Freudian psychoanalytic theory, the part of the personality that acts as a moral center, controlling the impulses of the id based on societal norms and values.

Ego

The component of personality in psychoanalytic theory that mediates between the demands of the id, superego, and reality.