A Disadvantage of Allocating Fixed Costs According to Actual Usage

question 59

Multiple Choice

A disadvantage of allocating fixed costs according to actual usage is that

• A) managers may be tempted underestimate usage.
• B) the allocation would capture the cause-and-effect relationship.
• C) variation in usage will result in variances that need to be managed.
• D) changes in one department's usage should not affect another department's allocation.
• E) some organizations offer rewards to managers who make accurate forecasts.

---

Definitions:

Triploblastic

Refers to organisms that during embryonic development form three primary germ layers: the ectoderm, mesoderm, and endoderm, which give rise to all bodily tissues and organs.

Cell Division

The process by which a cell replicates its genetic material and divides into two or more separate cells, essential for growth, reproduction, and tissue repair.

Rotifera

A phylum of microscopic and near-microscopic pseudocoelomate animals known for their wheel-like ring of cilia at their front ends.

Abdominal Assessment

A systematic examination of the abdomen to check for signs of disease or abnormality, involving inspection, palpation, percussion, and auscultation.