The Main Advantage of Using Budgeted Cost Rates Rather Than

question 81

Multiple Choice

The main advantage of using budgeted cost rates rather than actual cost rates is

• A)budgeted costs allow managers to have cost information on a timely basis.
• B)budgeted costs may be subject to short-run fluctuations.
• C)budgeted indirect-cost rates are known prior to the inception of a new job.
• D)actual indirect-cost rates are affected by work done on other jobs.
• E)budgeted rates are just as accurate and require less effort.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.