The Cost-Allocation Method That Allocates Each Support-Department's Costs to Operating

question 55

Multiple Choice

The cost-allocation method that allocates each support-department's costs to operating departments only is the ________.

• A) direct method
• B) single-rate cost allocation method
• C) step-down method
• D) reciprocal method

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Military Spending

Financial allocation by a government for the maintenance and operation of armed forces, including expenses related to salaries, equipment, training, and facilities.

Automatic Stabilizer

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action, such as progressive tax rates and unemployment benefits.

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or services and are part of government consumption expenditure and gross investment.