Question 11 (1 point) All of the following are benefits of decentralization EXCEPT it sharpens the focus of managers. it decreases management and worker morale. it leads to better supplier relationships it creates greater responsiveness to local needs. it leads to quicker decision making. Question 12 (1 point) Which purpose of cost allocation is used to decide on the selling price for a customized product or service? to measure income and assets for reporting to external parties to justify costs to motivate managers and other employees to compute reimbursement to provide information for economic decisions Question 13 (1 point) The price one subunit of an organization charges for a product or service supplied to another subunit of the same organization is called an interdepartmental product price. a subunit price a fixed price. an intermediate product price. a transfer price. Betty's Book and Music Store has two service departments, Warehouse and Data Centre. Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours. Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $125,000 and $150,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Warehouse Data Centre Music Books Department Department $175,000 $75,000 $125,000 $150,000 NA 250 500 750 Budgeted costs Budgeted warehouse-hours Number of computer hours 100 NA 400 500 Using the direct method, what amount of Data Centre Department costs will be allocated to Department Music? $30,000 211C