The actual return earned on a bond is highly dependent upon the reinvestment rate of the coupons

Which of the following statements about cost allocation is most correct?

a. The direct method of allocation recognizes services provided by support departments to one another. b. A cost driver is any grouping of overhead costs that must be allocated. c. The reciprocal method of allocation represents a compromise between the direct method and the step-down method. d. A cost pool is the total amount of direct costs incurred by one of the patient service departments. e. None of the above statements are correct.

The runs test tests the goodness of fit of the observed number of observations in each category to the number expected under specified binomial distribution

Indicate whether the statement is true or false