To Discourage Excessive Use of a Support Department, Management Might

question 104

Multiple Choice

To discourage excessive use of a support department, management might

• A)not allocate any costs of the support departments.
• B)allocate costs based on user department usage.
• C)allocate a fixed amount to each department regardless of use.
• D)expense fixed costs of support departments directly to the income statement.
• E)create special accounting records for the support department.

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Definitions:

Fight-or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, preparing the body to either confront or flee from the threat.

Allostatic

Refers to the body's ability to achieve stability through physiological or behavioral change in response to stress.

Homeostasis

The ability of an organism to maintain internal stability in response to environmental changes.

Pessimistic

A predisposition towards viewing things negatively or expecting the worst outcome, accompanied by a dearth of optimism or faith in what is to come.