Question

C a n that says resources should be spent the expected benefits to the company exceed the expected A) cost-benefit approach C) different costs for different purposes Explanation B) balanced Scorecard D) behavioral and technical considerations 6) Cast assignment A) includes future and arbitrary costs B) is the same as cost accumulation C) is the difference between budgeted and actual costs D) associates accumulated costs with certain cost objects Explanation A) 7) Which of the following statements about the direct direct soc i ation is true A) The design of sales target affects the direct indirect classification B) Indirect costs are always traced. C) The direct/indirect classification depends on the cost control measures D) Indirect costs are always allocated Explanation: A) 8) Cost allocation is A) the process of tracking both direct and indirect costs associated with a cost object B) the assignment of indirect costs to the chosen cost object C) made based on material acquisition document D) the process of determining the opportunity cost of a cost object chosen Explanation: A) 9) A manufacturing plant produces two product lines golf equipment and scree n. An empleo direct cost for the golf equipment line is A) salaries of the clerical staff that work in the company administrative office B) beverages provided daily in the plant break room for the entire staff Coverheads incurred in producing both golf and soccer equipment Dy monthly lease payments for a specialized piece of equipment needed to manufacture the poll drive Explanation: A)

Answer 1

Answer to 5

A) Cost-benefit approach

Explanation: If company feels that the expected benefits will be more than expected cost that means project is profitable to the company and to maximize the profit of the company manager should spent the maximum resources.

Answer to 6

D) associates accumulated costs with certain cost objects

Explanation: Cost assignment is the costing approach which focus on allocation of cost to different projects.

Answer to 8

A) Cost allocation is the process of tracking both direct and indirect costs associated with a cost object.

Explanation: To identify the total cost of different objects companies need to allocates the total cost with respective object to identify the profitability, cost planning and control on cost of different objects.