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Nitella [24]
3 years ago
5

When the purpose of cost allocation is to provide information for economic decisions or to motivate managers and​ employees, whi

ch of the following would be the best​ criteria? A. the benefitsminusreceived and the fairness criteria B. the fairness and the abilityminustominusbear criteria C. the causeminusandminuseffect and the benefitsminusreceived criteria D. the causeminusandminuseffect and the abilityminusto bear criteria
Business
1 answer:
natulia [17]3 years ago
6 0

Answer:

The correct answer is C) the cause-‐‑and-‐‑effect and the benefits-‐‑received criteria.

Explanation:

In general, the costs that are collected in the accounts serve three general purposes:

  1. Provide cost reports to measure utility and evaluate inventory (income statement and balance sheet).
  2. Offer information for the administrative control of the operations and activities of the company (control reports).
  3. Provide information to support planning and decision making (analysis and special studies).

Control constitutes the management for the fulfillment of the proposed goals, while cost reduction refers to the effort aimed at achieving a decrease in the levels or magnitude of the costs. The cost of the quality of a product represents the work that requires the identification and administration of the necessary expenditures to maintain an adequate degree of quality, that is, the supervision of compliance with the rules of its design and its specifications.

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Which of the following describes the financing activities section of the statement of cash flows?A) It reports on activities tha
olga_2 [115]

Answer:

C) It includes cash inflows and outflows related to long-term liabilities and equity.

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

In the above option, option C is a match with the meaning of the financing activities.  

Hence, all other options are incorrect.

5 0
4 years ago
Cooley company's stock has a beta of 1.32, the risk-free rate is 4.25%, and the market risk premium is 5.50%. what is the firm's
balu736 [363]
11.51%

The required rate of return = risk-free rate + Beta * (market risk premium)

Here, we multiply the beta of 1.32 times the market risk premium of 5.50%, then add the risk-free rate of 4.25% to get the required rate of return, or 11.51%. 
6 0
4 years ago
A cpa examines a sample of copies of december and january sales invoices for the initials of the person who verified the quantit
artcher [175]

A CPA examines a sample of copies of December and January sales invoices for the initials of the person who verified the quantitative data. This is an example of a Test of a control

<h3>What is the Test of a control?</h3>
  • Any auditing technique used to assess an organization's internal controls is known as a test of control.
  • Determining if these internal controls are adequate to identify or reduce the risk of material misstatements is the goal of control tests in auditing.
  • For instance, the auditor is working on the audit of ABC's financial accounts and it will begin very soon.
  • Normally, the auditor must complete audit preparation and get audit partner approval before proceeding with the substantive test or conducting fieldwork.

To learn more about Risk management, refer to the following link:

brainly.com/question/13760012

#SPJ4

4 0
2 years ago
What is the process of a decline in interest rates impacts the use of capital and economic growth.
Contact [7]

Answer:

Changes in interest rates can have both positive and negative effects on the markets. Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong, and lowering rates when the economy is sluggish. In economics, capital references non-financial assets used in the production of ... used up immediately in the process of production, unlike intermediate goods ... As a term, it is used to define balanced growth where the goal is to improve human capital ... The interest rate directly impacts economic choices.

Explanation:

Hope this helps!!

7 0
3 years ago
______ costs are administrative costs related to determining an order quantity, preparing purchase invoices, inspecting goods re
Rus_ich [418]

Answer: Ordering

Explanation:

Ordering cost tends to look at the cost required to order a particular item, from the initiation of the process till it's being inspected on it's arrival till it's moved to the store room. The first aspect is making enquires for the item, this us followed by bidding for the item, purchasing it, inspection and delivering to it's temporary location.

4 0
3 years ago
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