Question 1

When using the step-down method what is an appropriate method to rank the cost pools?

Accepted Answer

A)  From the cost pool with the lowest budgeted costs to the cost pool with the highest budgeted costs 
B)  From management's intuitive determination which can be based on a variety of factors 
C)  From the cost pool with the fewest employees to the cost pool with the most employees 
D)  All of these are acceptable methods as long as they are applied consistently 
A)  From the cost pool with the lowest budgeted costs to the cost pool with the highest budgeted costs 
B)  From management's intuitive determination which can be based on a variety of factors 
C)  From the cost pool with the fewest employees to the cost pool with the most employees 
D)  All of these are acceptable methods as long as they are applied consistently

Question 2

In a consulting company specializing in designing multi-story office complexes, which of the following activities would not be classified as support activity?

Accepted Answer

A)  Shipping. 
B)  Purchasing. 
C)  Structural engineering. 
D)  Human resources. 
E)  All of the above would be support departments. 
A)  Shipping. 
B)  Purchasing. 
C)  Structural engineering. 
D)  Human resources. 
E)  All of the above would be support departments.

When using the step-down method what is an appropriate method to rank the cost pools?

In a consulting company specializing in designing multi-story office complexes, which of the following activities would not be classified as support activity?

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Techniques for Estimating Fixed and Variable Costs

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Filters

Exam 16: Support Activity and Dual Rate Allocations

When using the step-down method what is an appropriate method to rank the cost pools?

In a consulting company specializing in designing multi-story office complexes, which of the following activities would not be classified as support activity?

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Techniques for Estimating Fixed and Variable Costs

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Filters