Which of the Following Methods of Allocating Support Department Costs

question 175

Multiple Choice

Which of the following methods of allocating support department costs is both simple and intuitive?

• A)linear equation method
• B)step-down method
• C)hybrid method
• D)reciprocal method
• E)direct allocation method

Grasp the concept of consideration and its significance in contract validity.

Identify factors that can terminate an offer or make contracts voidable or void.

Differentiate between contracts, gifts, and the role of consideration in distinguishing them.

Learn the legal implications of contractual capacity and how it affects certain groups, such as minors.

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Definitions:

Cash Excess

Cash excess refers to the situation where a company or individual has more liquid cash available than is necessary for current operations or investments.

Master Budget

A comprehensive financial planning document that includes all of the smaller, individual budgets within an organization, projecting all major financial activities.

Static Budget

A static budget is a fixed budget that does not change or adjust in response to changes in business activity levels, such as sales volume or production capacity, during the budget period.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, allowing for better control and analysis of performance by comparing actual costs to budgeted amounts at the actual activity level.