A Company Is Considering the Use of a Single-Stage Cost

question 139

Multiple Choice

A company is considering the use of a single-stage cost allocation process. Under what conditions would this choice be justified?

• A) The company has many service departments but only one production department.
• B) The company produces a few products with similar characteristics in a few departments.
• C) The company has no service departments but many production departments.
• D) The company produces a wide selection of differing products.

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Definitions:

iPhone App

A software application developed specifically for use on Apple's iPhone operating system (iOS).

Unit Sales

The quantity of items sold or number of services provided by a business in a given time period.

Revenue Model

A framework for generating financial income, identifying which revenue source to pursue, what value to offer, how to price the value, and who pays for the value.

Flat Fee

A pricing structure that charges a single fixed fee for a service, regardless of usage or time expended.