When an Organization Allocated Indirect Costs to Departments by Relative

question 53

True/False

When an organization allocated indirect costs to departments by relative size of the budgets, it is based on the criterion of benefits received.

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Definitions:

World Trade

Refers to the exchange of goods and services across international borders or territories.

Uneven Distribution

A situation where resources, wealth, or opportunities are not evenly shared among members of a society or geographic areas, often leading to disparities.

Economists

Professionals who study, develop, and apply theories and concepts from economics to understand how individuals, businesses, and societies allocate resources.

Offshoring

The relocation of a company's business process, such as manufacturing or services, from one country to another, often to exploit lower labor costs.