Consider the Following Statements About Support Department Cost Allocations

question 77

Multiple Choice

Consider the following statements about support department cost allocations.
i. The allocation of actual costs encourages support department managers to control the costs in their departments.
ii. When budgeted costs are allocated, any efficiency in support department operations are passed along to user departments.
iii. The allocation of budgeted costs rather than actual costs gives an incentive for support department managers to control costs in their departments.
Which statement/s is/are true?

• A) i
• B) ii
• C) i and ii
• D) iii

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Definitions:

Concordant Rates

In genetics, the likelihood of both members of a pair (especially twins) to either both exhibit or not exhibit a trait or disorder.

Heritability

Heritability is a measure of how much of the variation in a trait among individuals within a population can be attributed to genetic differences.

Concordance

The agreement or harmony between treatments, behaviors, or opinions among individuals or in data, often used in genetics and medicine to describe the similarity in illness or traits.

Hereditary Trait

A feature or characteristic passed from one generation to another through genes.