For Each Cost Pool Listed Select an Appropriate Allocation Base

question 39

Essay

For each cost pool listed select an appropriate allocation base from the list below.An allocation base may be used only once.Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1.Number of employees per department
2.Employee wages and salaries per department
3.Number of sales orders
4.Hours of operation of each production department
5.Machine hours by department
6.Operations costs of each department
7.Hours of computer use per month per department
8.Number of units sold
Cost pools:
___a. Vice President of Finance's office expenses
___b. Computer operations used in conjunction with manufacturing
___c. Personnel Department
___d. Sales-order costs
___e. Energy costs

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Definitions:

Automatic Processing

Mental operations that occur without conscious awareness or effort, enabling quick responses or decisions.

Deliberate Processing

A cognitive process involving conscious and careful thought and evaluation of information.

Cognitive Coping

The idea that beliefs play a central role in helping people cope with and recover from misfortunes.

Dual Attitude Theory

A psychological concept suggesting that people can hold two different evaluations (positive and negative) about the same object at the same time.