To Discourage Unnecessary Use of a Support Department, Management Might

question 146

Multiple Choice

To discourage unnecessary use of a support department, management might ________.

• A) allocate user department costs based upon support department usage
• B) allocate support department costs based upon user department usage
• C) allocate a fixed amount of support department costs to each and every department
• D) allocate a fixed amount of user department costs to each and every department

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Definitions:

Competitive

Describes a market situation where multiple sellers are vying for the same customer base, promoting innovation and price reduction.

Excise Tax

A tax imposed on specific goods and services, such as tobacco, gasoline, and alcohol, often used to discourage their use and generate revenue.

Restrictions on Advertising

Regulations or limitations placed on the content, timing, and medium of advertising to protect consumers and promote fair competition.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.