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5510816
Cost Final Chapter 15
Descripción
Test sobre Cost Final Chapter 15, creado por amanda.padilla el 22/05/2016.
Test por
amanda.padilla
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Resumen del Recurso
Pregunta 1
Pregunta
To discourage unnecessary use of a support department, management might ________.
Respuesta
allocate user department costs based upon support department usage
allocate support department costs based upon user department usage
allocate a fixed amount of support department costs to each and every department
allocate a fixed amount of user department costs to each and every department
Pregunta 2
Pregunta
The biggest advantage of using practical capacity to allocate costs is that it ________.
Respuesta
focuses the user's division with the costs of overused capacity
never causes over or under-allocated overhead
burdens the user divisions with the costs of unused capacity
focuses management's attention on unused capacity
Pregunta 3
Pregunta
The method that allocates costs by explicitly including all the services rendered among all support departments is the ________.
Respuesta
direct method
step-down method
reciprocal method
sequential method
Pregunta 4
Pregunta
A cost of operating a facility, department, activity area, or like cost object that is shared by two or more users is called a ________.
Respuesta
combined cost
distinct cost
fixed cost
common cost
Pregunta 5
Pregunta
Contract disputes regarding cost allocation can be reduced by defining ________.
Respuesta
the material items allowed for production
the terms used, such as what constitutes direct
permissible tax deductions
minimum profit level the company should earn
Pregunta 6
Pregunta
Tours Corp offers towing services, auto routing, travel brochures, and other travel services for one annual fee. This is an example of ________.
Respuesta
revenue tracing
revenue allocation
a bundled product
a business conglomerate
Pregunta 7
Pregunta
The method that ranks individual products in a bundle for revenue allocation is the ________.
Respuesta
stand-alone revenue-allocation method
incremental revenue-allocation method
unit-cost weighting method
physical-unit weighting method
Pregunta 8
Pregunta
Which of the following is a disadvantage of a dual-rate method?
Respuesta
It allocates fixed costs on the basis of budgeted long-run usage may tempt some managers to underestimate their planned usage.
It may lead operating department managers to make sub-optimal decisions that are in their own best interest.
It allocates fixed and variable-cost pool using the same cost-allocation base, which will mislead managers in making decisions.
It does not guide department managers to make decisions that benefit both the organization as a whole and each department.
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