Which of the Following Statements Concerning the Allocation of Indirect

question 12

Multiple Choice

Which of the following statements concerning the allocation of indirect expenses to departments is true?

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

---

Definitions:

FTC

The Federal Trade Commission, a U.S. government agency focused on consumer protection and maintaining competition.

Estate Settlement

The process of managing and distributing a deceased person's assets according to their will or state laws if there is no will.

Real Estate Brokers

Licensed professionals who arrange real estate transactions, putting buyers and sellers together and acting as their representatives in negotiations.

Phonebook

A printed listing of individuals' and organizations' telephone numbers, addresses, and sometimes additional information, grouped geographically.