Assume That Increasing the Utility of the Transfer Recipient Is

question 46

Multiple Choice

Assume that increasing the utility of the transfer recipient is the only criterion cared about.When comparing a cash transfer payment to an in-kind payment of an equal value it is clear that _____.

• A)the recipient is always better off with a cash transfer
• B)the recipient is never worse off with a cash transfer
• C)the two are identical
• D)the recipient would prefer an in-kind payment if legally possible

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Definitions:

Department Manager

A department manager is responsible for overseeing the daily operations, budget, and personnel of a specific department within a company.

Support Department Allocations

The method of distributing the costs of support departments to producing or other service departments that benefit from the activities of the support departments.

Profit Center

A division or branch of a company that is treated as a separate unit for the purpose of assessing its profitability.

Support Department Allocations

The process of distributing indirect costs from support departments to producing departments based on relevant allocation bases.