To guide cost allocation decisions, the cause-and-effect criterion ________.
A) is used less frequently than the other criteria |
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B) is the primary criterion used in activity-based costing |
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C) considers fairness as a matter of judgment rather than an operational criterion |
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D) advocates allocating costs in proportion to the cost object's ability to bear costs allocated to it |
To guide cost allocation decisions, the cause-and-effect criterion ________. A) is used less frequently than the...
To guide cost allocation decisions, the ability to bear criterion ________. A) is the primary criterion used in activity-based costing B) allocates cost among the beneficiaries in proportion to the benefits each receives. C) results in subsidizing products that are not profitable D) is used more frequently than any other criteria
The dual-rate cost-allocation method classifies costs in each cost pool into a ________. A) budgeted-cost pool and an actual-cost pool B) variable-cost pool and a fixed-cost pool C) direct-cost pool and an indirect-cost pool D) direct-cost pool and a reciprocal-cost pool To guide cost allocation decisions, the ability to bear criterion ________. A) is the primary criterion used in activity-based costing B) allocates cost among the beneficiaries in proportion to the benefits each receives. C) results in subsidizing products that...
Choosing among alternative cost allocation methodologies typically is based on one of the following criteria: cause-and-effect, benefits derived, fairness, or ability to bear. Discuss how the “fairness” criterion can be used in selecting a cost allocation methodology.
Choosing among alternative cost allocation methodologies typically is based on one of the Following criteria: cause-and-effect, benefits derived, fairness, or ability to bear Discuss how the “Fairness” criterion can be used in selecting a cost allocation methodology.
The most preferable allocation base is one that meets the criteria of: Fairness Cause and effect Correct! Benefits received Ability to bear Question 2 A company allocates its corporate overhead to the divisions based on division sales (i.e., a division with 20% of the total company sales is allocated 20% of the corporate overhead). This is an example of: Fairness Cause and effect Benefits received Ability to bear Correct! Question 3 A company allocates its human resources department...
Which of the following methods of cost allocation is not one of the four common methods used to allocate the joint costs incurred in a production process? a. Market value at split-off method b. Weighted average method c. Net realizable value method d. Reciprocal services method ------------------------ Which of the following is not a support department? a. The department that produces pizza boxes in a paper container manufacturing facility b. The Janitorial Department in a plastic salad container manufacturing facility...
Integrative Case 11-77 (Algo) Effect of Cost Allocation on Pricing and Make versus Buy Decisions (LO 11- 7,8) Ag-Coop is a large farm cooperative with a number of agriculture-related manufacturing and service divisions. As a cooperative, it pays no federal income taxes. The company owns a fertilizer plant that processes and mixes petrochemical compounds into three brands of agricultural fertilizer: greenup, maintane, and winterizer. The three brands differ with respect to selling price and the proportional content of basic chemicals....
Multiple choice Multiple-choice questions 60. A cost object cannot be: a a geographic region b. a customer c. a department d. none of the above, i e. all can be cost objects LO 1 61. Which of the following is least likely to be a cost object for a car manufacturer a. Human Resources Department b. Assembly Division c. Gordon Lee - a part time employee in the cafeteria d. Charlie's Car Company- a long term customer LO I 62....
Zando Pharmaceuticals is an affiliate of the German-based Heisenberg Corporation, which employs 40,000 worldwide. Zando’s St. Louis facility houses the U.S. corporate headquarters and Research and Development (R&D). It produces 30 products, using 28 different batch processes. The facility has 2,000 employees on-site. In recent years, Zando’s profitability has suffered, which can be attributed to increased competition, customer dissatisfaction, and regulatory pressures. Luis Alvarado, president of Zando, called a meeting to consider ways to improve profitability. He labeled the meeting...