Question

*5) TRUE or FALSE: In a multinational company budgeting is primarily done to evaluate the firm's performance relative to its budgets.*

Objective 6.7

Answer 1

Option (c), Utilities expense is not a line item of a company reporting costs by function; it is an overhead cost allocated across various functions.

Step-by-step explanation:

The question seeks to identify which item would not typically be a line item of a company reporting costs by function. Cost reporting by function includes major categories like administration, manufacturing, and distribution expenses.

However, utilities expense is generally not reported as a separate function because it is a type of overhead that is typically allocated across various functions based on some method of cost allocation, rather than reported as a standalone category.