While Allocating Corporate Costs to Divisions ________

question 56

Multiple Choice

While allocating corporate costs to divisions ________.

• A) only fixed costs should be allocated
• B) no homogeneous cost pools should be constructed
• C) all the costs in the cost pool should not have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base
• D) allocate both variable and fixed costs to divisions and then to customers

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Definitions:

Coefficient Of Correlation

An evaluative score indicating the intensity and directional path of a linear connection between two factors.

Variation

Variation refers to the degree to which data points in a dataset or population differ from each other and from the mean.

Dependent Variable

In an experiment or study, it is the variable that is being tested and measured, expected to change in response to alterations in the independent variable.

Coefficient Of Correlation

A statistical measure that quantifies the degree to which two variables change together; ranging from -1 to 1.