The Process of First Allocating Costs to Intermediate Cost Pools

question 79

Multiple Choice

The process of first allocating costs to intermediate cost pools and then to the individual cost objects using different allocation bases is a(n) :

• A) continuous flow process.
• B) cost management system.
• C) two-stage allocation system.
• D) operations cost.

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Definitions:

Cash Inflows

Refers to the money coming into a company, typically from operations, investments, and financing activities.

NPV Zero

A situation where the net present value of a project or investment is zero, indicating that the projected earnings are exactly equal to the initial investment.

Required Return

The minimum expected return an investor demands for investing in a non-risk-free asset.

Hacksaw Blade

A replaceable, toothed strip used in a hacksaw for cutting materials such as metal and plastic.