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:

Semantic Memory

A type of long-term memory that involves the ability to remember meanings, concepts, facts, and general knowledge about the world.

Episodic Memory

The ability to remember specific events or episodes from one's life, including the contexts and emotions associated with them.

Mnemonic Devices

Tools or strategies used to improve memory through the use of patterns, rhymes, acronyms, or visual aids.

Visual Imagery

The mental visualization of scenes or images, a cognitive process used in memory, creativity, and problem-solving.