The Biggest Problem with Allocating Indirect Expenses to Segments Is

question 46

Multiple Choice

The biggest problem with allocating indirect expenses to segments is that:

• A) fixed costs are ignored.
• B) it is a time-consuming exercise.
• C) allocations can be somewhat arbitrary and the results can vary widely.
• D) some departments consume more indirect expenses.

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Definitions:

Deference

A respectful submission or yielding to the judgment, opinion, will, or authority of another.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and sadness.

Unique Traits

are attributes or characteristics that distinguish an individual from others, making them unique.

Innate Temperament

Refers to the inherent aspects of an individual's personality, including mood, behavior, and emotional responses, that are believed to be present from birth.