Revenue Allocation Is Used When ________

question 73

Multiple Choice

Revenue allocation is used when ________.

• A) revenues cannot be estimated but can be traced to specific cost objects
• B) revenues are related to a particular revenue object but cannot be traced to it in an economically feasible way
• C) revenues are not related to a particular object but can be traced to that object in an economically feasible way
• D) revenue optimization is the goal

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Definitions:

Scanlon Plan

A type of gain-sharing program that rewards employees for contributions to productivity improvements through cost savings, emphasizing teamwork and participation.

Future Cost

Predicted financial expenditure associated with an action or decision, considering potential increases in prices or changes in resource availability.

Labour

The human effort, whether physical or mental, that is applied to the production of goods and services.

Goal-Sharing Plans

A type of incentive plan where employees are rewarded if collective goals are achieved, promoting teamwork and collaboration.