Why Is Activity-Based Costing Used to Allocate Service Department Costs

question 50

Multiple Choice

Why is activity-based costing used to allocate service department costs?

• A)There are fewer cost-allocation bases.
• B)It can lead to improved allocation of production department costs to service departments.
• C)It results in identifying more accurate cost-allocation bases.
• D)None of the answers is correct.

Identify the key criticisms of traditional strategic models (e.g., Porter’s model).

Understand the role of human resource management practices in implementing strategic choices.

Describe the process of strategic planning from initial stages to execution.

Understand the steps and importance of the strategic planning process.

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Definitions:

Self-serving Bias

A cognitive tendency to perceive oneself in a way that is overly favorable, attributing successes to personal characteristics and failures to external factors.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors; it is what causes individuals to act or react in a particular manner.

High Degree

A term describing a level of education or achievement that is considerably above average, often referring to advanced academic degrees.

Maslow's Needs

A theory proposed by Abraham Maslow organizing human needs into a hierarchical structure starting from basic physiological needs to self-actualization.