Question

Decisions related to allocating expenses include: (check all that apply).

A) Determining the budget for marketing activities
B) Allocating overhead costs to different departments
C) Assigning costs to specific products or services
D) Calculating employee salaries
E) Setting prices for goods or services
F) Budgeting for research and development

Answer 1

Decisions related to allocating expenses in a firm involve budgeting for marketing, allocating overhead costs, assigning costs to products or services, calculating salaries, setting prices, and budgeting for research and development.

Step-by-step explanation:

Decisions related to allocating expenses for a firm involve several key areas. These decisions encompass:

• Determining the budget for marketing activities: This is deciding how much money will be devoted to marketing efforts.
• Allocating overhead costs to different departments: This is the process of distributing shared costs across various parts of the business.
• Assigning costs to specific products or services: This includes calculating how much it costs to produce or deliver a product or service.
• Calculating employee salaries: This involves figuring out the payment for staff based on their roles and responsibilities.
• Setting prices for goods or services: This is the decision about what price point products or services will be sold at.
• Budgeting for research and development: Determining the financial resources dedicated to innovation and product development.

All these decisions have a financial impact and thus require a careful budgeting process. Firms typically raise the capital to cover these expenses from early-stage investors, by reinvesting profits, borrowing, or by selling stock.

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