Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as
A. step down allocation method
B. stand-alone revenue allocation method
C. incremental revenue allocation method
D. revenue mix allocation method
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Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as
A. indirect method
B. direct method
C. step down method
D. reciprocal method
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Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called
A. step down product
B. dual mix product
C. bundled product
D. reciprocal product
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Method, which allocates cost of support department to operating and support departments is known as
A. indirect method
B. direct method
C. step down method
D. reciprocal method
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Approaches to allocate costs of support department do not include
A. sales mix allocation method
B. dual-rate cost-allocation method
C. single rate cost allocation method
D. both b and c
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In incremental cost allocation method, cost object user who is ranked second in ranking order is known as
A. First incremental user
B. primary user
C. secondary user
D. second incremental user
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Second ranked product in incremental revenue allocation method is termed as
A. primary product
B. First incremental product
C. Second incremental product
D. Third incremental product
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Methods used to allocate costs of reciprocal support departments include
A. direct method
B. step down
C. reciprocal method
D. all of above
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Method which allocates cost of support department to only operating departments is called
A. indirect method
B. direct method
C. step down method
D. reciprocal method
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Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as
A. revenue allocation
B. revenue object
C. revenue increment
D. reciprocal revenue
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Considering dual rate method, if employees work for 8500 budgeted hours at 120 p er h o u r an d w or k f or 9500 a c t u a l h o u r s a t 110 per hour, then total cost would be
A. $2,078,000
B. $3,078,000
C. $2,065,000
D. $3,065,000
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Method which determines weights of cost allocation by considering cost of each user as separate entity is known as
A. bundled products allocation method
B. variable cost allocation method
C. stand-alone cost allocation method
D. incremental cost allocation method
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Budgeted total direct labour cost is divided with budgeted total direct labour to calculate
A. budgeted indirect labour cost rate
B. expected direct labour cost rate
C. budgeted direct labour cost rate
D. expected indirect labour cost rate
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Budgeted direct labour hours are multiplied to direct labour cost rate to calculate
A. expected total direct labour cost
B. budgeted total direct labour cost
C. budgeted total indirect labour cost
D. expected labour hours
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Term which describes assigning of indirect cost to any cost abject is classified as
A. cost allocation
B. sales tracing
C. sales allocation
D. cost tracing
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A document which contains information about materials of specific product, in specific department comes under
A. costing method
B. selling method
C. material acquisition method
D. none of above
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If budgeted annual indirect cost is 60000 , b u d g e t e d ann u a l q u an t i t y o f cos t a l l oc a t i o nba se i s 3600, then budgeted indirect cost rate will be
A. 15.67 per piece
B. 16.67 per piece
C. 14.67 per piece
D. 13.67 per piece
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An under allocated indirect cost is also called
A. under applied indirect cost
B. under absorbed indirect cost
C. absorbed indirect cost
D. both a and b
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In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as
A. incurred indirect cost
B. over allocated indirect cost
C. applied indirect cost
D. applied direct cost
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A group of individual indirect cost item is defined as
A. direct pool
B. cost pool
C. indirect pool
D. item pool
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