Which of the Following Is NOT a Benefit of the Costs

question 33

Multiple Choice

Which of the following is NOT a benefit of the costs of support departments being allocated to production departments?

• A)The allocation assists producing departments' use of support departments at a more efficient level.
• B)Allocation of support department costs encourages managers of production departments to monitor performance of the support department.
• C)The allocation helps each department select the correct level of support service consumption.
• D)Management will use the information to support out-sourcing all support services.

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Definitions:

Marginal Productivity Theory

An economic theory stating that the amount of pay or wages a worker receives is directly related to their contribution to the output or productivity.

Income Disparities

The uneven distribution of income within a population, often leading to social and economic inequality.

Median Earnings

The middle value of earnings in a group, where half earn more and half earn less, often used as a standard of comparison.

Labor Market

The supply and demand for labor, where employers find employees and individuals find jobs.