To Guide Cost Allocation Decisions, the Benefits-Received Criterion ________

question 152

Multiple Choice

To guide cost allocation decisions, the benefits-received criterion ________.

• A) generally uses the cost driver as the cost allocation base
• B) advocates allocating costs in proportion to the cost object's ability to bear costs allocated to it
• C) is the primarily used criterion in activity-based costing
• D) may use an allocation base of division revenues to allocate advertising costs

Calculate depreciation using the straight-line method and identify its implications on financial statements.

Apply the double-declining-balance method for calculating asset depreciation and understand its impact on asset valuation.

Determine depreciation expense using the units-of-output method and its relevance to asset utilization.

Analyze the effects of revising depreciation estimates on the book value and depreciation expense of assets.

---

Definitions:

Centralization

The accumulation of decision-making power at the higher echelons of an organization or system.

Initiating Structure

A leadership behavior characterized by clearly defining and organizing work roles and tasks, and setting up clear lines of communication and authority.

Task Satisfying

The state of finding fulfillment or satisfaction in completing tasks or activities, often related to work or personal projects.

Employee Depend

The reliance of employees on their workplace for various needs or support.