Question 1

When determining product cost,the last step in the traditional approach to cost allocation is ________.

Accepted Answer

A) divide costs in each producing department into direct costs and indirect costs 
B) trace direct costs to products 
C) select cost pools and cost allocation bases in each production department and assign indirect department costs to the appropriate cost pool 
D) allocate the costs in each cost pool to the product in proportion to the usage of the related cost-allocation base 
A) divide costs in each producing department into direct costs and indirect costs 
B) trace direct costs to products 
C) select cost pools and cost allocation bases in each production department and assign indirect department costs to the appropriate cost pool 
D) allocate the costs in each cost pool to the product in proportion to the usage of the related cost-allocation base

Question 2

Two popular methods for allocating service department costs to user departments are the direct method and the step-up method.

Accepted Answer

A) True 
 B)False

Question 3

Companies must assign all value chain costs to products for internal financial reports.

Accepted Answer

A) True 
 B)False

Question 4

The step down method of allocating service department costs to producing departments recognizes that service departments provide support activities in ________ departments and ________ departments.

Accepted Answer

A) producing; traditional 
B) producing; other service 
C) activity-based costing; traditional costing 
D) variable-costing; absorption-costing 
A) producing; traditional 
B) producing; other service 
C) activity-based costing; traditional costing 
D) variable-costing; absorption-costing

Question 5

Public relations costs and top management salaries are examples of central corporate support costs.

Accepted Answer

A) True 
 B)False

When determining product cost,the last step in the traditional approach to cost allocation is ________.

Two popular methods for allocating service department costs to user departments are the direct method and the step-up method.

Companies must assign all value chain costs to products for internal financial reports.

The step down method of allocating service department costs to producing departments recognizes that service departments provide support activities in departments and departments.

Public relations costs and top management salaries are examples of central corporate support costs.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 12: Cost Allocation

When determining product cost,the last step in the traditional approach to cost allocation is ________.

Two popular methods for allocating service department costs to user departments are the direct method and the step-up method.

Companies must assign all value chain costs to products for internal financial reports.

The step down method of allocating service department costs to producing departments recognizes that service departments provide support activities in ________ departments and ________ departments.

Public relations costs and top management salaries are examples of central corporate support costs.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

The step down method of allocating service department costs to producing departments recognizes that service departments provide support activities in departments and departments.