For Performance Evaluation Purposes, the Fixed Costs of a Service

question 17

Multiple Choice

For performance evaluation purposes, the fixed costs of a service department should be charged to operating departments using:

• A) actual fixed costs and the budgeted level of activity for the period.
• B) budgeted fixed costs and the actual level of activity for the period.
• C) budgeted fixed costs and the peak-period or long-run average servicing capacity.
• D) actual fixed costs and the peak-period or long-run average servicing capacity.

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Definitions:

Anticipatory Semantic Slanting

The deliberate use of language to shape and influence perceptions or expectations of future events.

Name Calling

A tactic used in argumentation or insult where derogatory or unpleasant terms are used about an individual or group.

Tax Increase

A raise in the amount of money that must be paid to the government based on earnings, property value, or purchases, often implemented to fund public services.

Representativeness Heuristic

A cognitive shortcut used in decision making, where the likelihood of an object belonging to a category is assessed based on how similar it is to one's conception of that category.