Which of the Following Is Not a Benefit of Cost

question 18

Multiple Choice

Which of the following is not a benefit of cost allocation?

• A) Instilling responsibility for all costs of the company in division managers.
• B) Constructing performance measures that may be more meaningful than contribution margins.
• C) Relating indirect costs to contracts, jobs and products.
• D) Additional bookkeeping costs incurred to provide cost allocation information.

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Definitions:

Straight-Line Amortization

Straight-line amortization is a method of gradually reducing the book value of an intangible asset over a fixed period of its useful life.

Bond Interest Expense

The periodic expense incurred by an issuer of bonds as payment to the bondholders for their investment, typically paid semi-annually.

Face Value

The nominal value printed on a financial instrument such as a bond or stock certificate, representing its legal value.

Semiannually

Occurring twice a year or every six months.