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When Actual Cost-Allocations Rates Are Used, Which of the Following

Question 24

Multiple Choice
When actual cost-allocations rates are used, which of the following would be true?
A) user divisions pay for costs that exceed budgeted amounts
B) managers of the supplier division are motivated to improve efficiency
C) user divisions are unaware of the allocated amounts until the end of the budget period
D) managers know with certainty the rates to be used in that budget period

When actual cost-allocations rates are used, which of the following would be true?


A) user divisions pay for costs that exceed budgeted amounts
B) managers of the supplier division are motivated to improve efficiency
C) user divisions are unaware of the allocated amounts until the end of the budget period
D) managers know with certainty the rates to be used in that budget period

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