Indicate Whether Each of the Following Statements Is True or False

question 110

Short Answer

Indicate whether each of the following statements is true or false.
1. Information prepared using allocated costs often is used in evaluating the performance of managers.
2. Information prepared using allocated costs should not be used in budgeting and resource allocation decisions within a company.
3. A cost that is indirect with respect to one cost object may be direct with respect to other cost objects.
4. Fixed costs generally are direct costs, and variable costs generally are indirect.
5. An allocation base causes a cost to be incurred.

---

Definitions:

Military Leader

An individual who commands and leads armed forces or groups within them, often possessing qualities such as courage, strategic planning, and decision-making skills.

Roosevelt Corollary

1904 announcement by President Theodore Roosevelt, essentially a corollary to the Monroe Doctrine, that the United States could intervene militarily to prevent interference from European powers in the Western Hemisphere.

International Police Power

The assertion of a nation's authority beyond its borders, often to protect its own interests or to maintain international peace and security.

Western Hemisphere

The half of the Earth that lies west of the Prime Meridian (which crosses Greenwich, London) and east of the antimeridian, encompassing the Americas.