Using Normal Costing the Amount of Supervisory Salaries to Allocate

question 56

Multiple Choice

Using normal costing the amount of supervisory salaries to allocate is determined by calculating

• A)actual direct-cost rates times actual quantities of direct-cost inputs.
• B)actual indirect-cost rates times actual quantities of cost-allocation bases.
• C)actual direct-cost rates times budgeted quantities of input.
• D)budgeted indirect-cost rates times actual quantities of cost-allocation bases.
• E)budgeted indirect-cost rates times budgeted quantities of cost-allocation bases.

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Definitions:

Fiscal Programs

Government initiatives that involve expenditure and taxation decisions to influence the national economy.

2008-2009 Recession

A severe global economic downturn triggered by the financial crisis, marked by significant declines in consumer wealth, extensive layoffs, and a contraction in economic activity.

Fiscal Policies

Government policies related to taxation and spending that aim to influence the economy.

Political Business Cycle

A theory suggesting that electoral cycles influence economic cycles, with policymakers manipulating the economy to improve re-election chances.