Consider the Following Statements Regarding Cost Allocation

question 49

Multiple Choice

Consider the following statements regarding cost allocation.i.Allocation of budgeted costs is preferred to actual cost as this minimises the possibility that the actions of one user department will affect the costs allocated to another user department
Ii) Allocation of standard budgeted rates is preferred,so the user department does not have to bear the inefficiencies of support departments.
Iii) Knowing the standard rates in advance allows the user departments to plan their activities with greater certainty.Which statement/s is/are true?

• A) i
• B) i and ii
• C) i,ii and iii
• D) ii and iii

---

Definitions:

Uterine Wall

The muscular layer of the uterus, which expands during pregnancy to accommodate a growing fetus and contracts during childbirth.

Prenatal Development

The process of growth and development within the womb from conception to birth.

Fluid Intelligence

The capacity for deductive reasoning and the ability to use new information to solve problems; it is relatively independent of education and tends to decline in old age.

Intellectual Abilities

Refers to the mental capacities that allow individuals to learn, reason, solve problems, and adapt to new situations.