Exam 14: Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Which of the following classifications of costs in the customer-cost hierarchy would be most appropriate for the costs of activities to sell each unit to a customer?

What might explain why some managers advocate fully allocating all costs,including corporate costs to distribution channels and to customers?

Which of the following is the formula for the sales-quantity variance?

Archoid's Flowering Plants provides the following information for the month of May: What is the budgeted contribution margin per composite unit for the actual mix? (Round any intermediary calculations two decimal places. )

Corporate brand advertising and general administration costs are examples of corporate costs.

Salary of top management and general-administration costs is an example of which of the following?

Briefly describe the four criteria used to guide cost-allocation decisions.

The Chair Company manufactures two modular types of chairs: one for the residential market,and the other for the office market.Budgeted and actual operating data for the year 2015 are: Required: Compute the following variances in terms of contribution margin: a.Compute the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance. b.Compute the sale-mix variance and the sales-quantity variance by type of chair,and in total.

Bar charts and a whale curve are some of the common ways of displaying the results of customer-profitability analysis.

Under the cause and effect criterion,reasonableness is a matter of judgment rather than an operational criterion.

Corporate administrative costs allocated to a division cost pool are most likely to be ________.

Customers making large contributions to the profitability of the company should ________.

Why do managers prepare cost-hierarchy-based operating incomes statements?

The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit of the sales mix.

Homogeneous cost pool leads to which of the following?

The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners,the Standard and the Super.The following information was gathered about the two products: What is the total sales-mix variance in terms of the contribution margin? (Round intermediary calculations to two decimal places. )

The Fortise Corporation manufactures two types of vacuum cleaners,the Victor for commercial building use and the House-Mate for residences.Budgeted and actual operating data for the year 2017 were as follows: What is the total sales-mix variance in terms of the contribution margin? (Round any intermediary calculations two decimal places. )

The sales-quantity variance results from a difference between ________.

To guide cost allocation decisions,the ability to bear criterion ________.

Using the fairness criterion,the costs are allocated among the beneficiaries in proportion to the benefits each receives.