Preston Company Has Three Divisions

question 145

Multiple Choice

Preston Company has three divisions.The company should consider a cost to be a direct cost of a division if:

• A) It meets guidelines imposed by generally accepted accounting principles.
• B) It can be traced to a division in a cost-effective manner.
• C) It is a variable cost.
• D) It can be allocated to a division.

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Definitions:

Skinner

B.F. Skinner, an influential psychologist known for his work on behaviorism and the development of the operant conditioning theory.

Social Interaction

involves the process by which individuals act and react in relation to others, impacting and shaping their behaviors, roles, and expectations.

Intelligence and Foresight

The capacity to understand complex ideas, to adapt to the environment, learn from experience, engage in various forms of reasoning, and apply knowledge to manipulate one's environment, often involves anticipating outcomes.

Observed Behavior

The actions or responses of an individual that can be seen and measured by others or oneself.