Which of the Major Objectives of Allocation as Identified by the IMA

question 29

Multiple Choice

Which of the major objectives of allocation as identified by the IMA would NOT be relevant in a service organization?

• A) to obtain a mutually agreeable price
• B) to compute product-line profitability
• C) to predict the economic effects of planning and control
• D) all are objectives of allocation

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholder members, usually extracted from the company's earnings.

Selling Stock

The process of offering shares of a company's capital to investors in exchange for capital, diluting ownership but potentially raising funds for growth.

S-type Corporation

A special designation that allows corporations to pass corporate income, credits, and deductions directly to their shareholders for federal tax purposes.

Taxation

The practice by which a government collects money from individuals, businesses, and other organizations to fund public services and initiatives.