Which of the Following Can Be Described as a Fiduciary

question 116

Multiple Choice

Which of the following can be described as a fiduciary duty of cost assignment?

• A) ABC should be implemented to ensure adequate cost control regardless of cost.
• B) Department managers should select activity cost drivers that increase their chance for success.
• C) Effective delegation requires management to maintain close control over processes that incur costs.
• D) Managers must avoid expanding their scope beyond the functions they control.
• E) Cost assignment should begin with a limited scope of activities that managers believe are critical to the success of the company.

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Definitions:

Insurable Interest

The requirement in insurance policies that the holder must have a stake in the insured item or person that would result in financial loss if harmed.

Insurance

A financial product that provides protection against financial losses in exchange for premium payments, covering risks such as accident, illness, or property damage.

Meaning

The significance or interpretation of a word, phrase, sentence, or symbol.

Bonding

The process of creating a secure financial guarantee, typically via a bond, that protects against losses from failure to meet contractual obligations or perform duties.