When Choosing Between Budgeted Usage and Actual Usage as Allocation

question 37

Multiple Choice

When choosing between budgeted usage and actual usage as allocation bases, which of the following is true?

• A) Actual rates let users know in advance what their costs are.
• B) When budgeted rates are used, users must wait till the end of the budget period to know what their costs are.
• C) With actual rates, a support department, rather than a user department, bears the risk of unfavourable cost variances.
• D) Budgeted rates may lead to user departments outsourcing needed work, rather than relying on an internal support department.
• E) Budgeted rates may help the manager of a support department to improve efficiency.

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Definitions:

Epidural Anesthesia

A form of regional anesthesia involving the injection of medication into the epidural space of the spinal cord to block pain in a particular region of the body.

Advance Directive

A legal document outlining a person's wishes regarding medical treatment in situations where they are unable to communicate.

Nonmaleficence

Fundamental ethical agreement to do no harm. Closely related to the ethical standard of beneficence.

Teratogens

Chemical or physiological agents that may produce adverse effects in the embryo or fetus.