The True Statement Concerning the Allocation of Indirect Expenses to Departments

question 31

Multiple Choice

The true statement concerning the allocation of indirect expenses to departments is:

• A)Accountants have developed methods that have completely removed the subjectivity in allocating indirect costs to departments
• B)A departmental profit calculation should exclude expenses that the departmental manager has no control over
• C)When preparing departmental profit reports it is best to assume that the departments are independent businesses
• D)Different accountants will normally chose similar bases to allocate overhead costs to departments

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Definitions:

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Addictive Disorder

A psychological disorder characterized by a dependency on substances such as alcohol, drugs, or behaviors like gambling, leading to significant impairment or distress.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a diagnostic tool published by the American Psychiatric Association that defines and classifies mental disorders.

Withdrawal Reactions

Symptoms that arise when discontinuing or reducing the intake of a substance that one has become dependent on.