The Method That Allocates Costs in Each Cost Pool Using

question 171

Multiple Choice

The method that allocates costs in each cost pool using the same rate per unit is known as the

• A)incremental cost allocation method.
• B)reciprocal cost allocation method.
• C)single-rate cost allocation method.
• D)dual-rate cost allocation method.
• E)homogeneous cost allocation method.

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Definitions:

Centralized

An organizational structure where decision-making authority is concentrated at the top levels of management.

Departmentalization

The process of dividing an organization into different departments or units based on functions, products, or geographical locations for efficiency.

Empowering

Giving employees the authority, resources, and opportunity to make decisions and contribute to the organization’s success..

Hierarchical Levels

Hierarchical levels refer to the layered structure within organizations where positions and functions are ranked according to levels of importance and authority, from the top management to the lowest operational levels.