What Is the 80-20 Rule Used When Selecting Cost Allocation

question 35

Multiple Choice

What is the 80-20 rule used when selecting cost allocation bases for the budgeted overhead rate?

• A) 80% of the cost-allocation bases drive 20% of the overhead costs
• B) 20% of the cost-allocation bases drive 80% of the overhead costs
• C) 80% of the overhead rate is determined by 20% of the cost-allocation bases
• D) 20% of the overhead rate is determined by 80% of the cost-allocation bases

---

Definitions:

Expectations

Beliefs or anticipation about the way events, behaviors, or things should happen or be.

Learned Helplessness

A psychological condition in which an individual becomes passive and unable to act to escape adverse situations due to previous exposure to uncontrollable events.

Pessimistic Explanatory Style

A tendency to explain negative events as permanent, pervasive, and personal causes, often linked to feelings of helplessness and depression.

Seligman

Martin Seligman is a psychologist known for his work on learned helplessness, positive psychology, and well-being.