Higher-level performance reports should allocate both traceable and common fixed costs to lower departments. Select one:...
Higher-level performance reports should allocate both traceable and common fixed costs to lower departments.
Select one:
True
False
Homework Answers
False
The Traceable Fixed Cost are specific to the department/product and will not be incurred if the department are shut down/closed. So cost are absorbed by the respective department/product only.
Common Fixed cost is incurred as a whole and is not expected to reduce if 1 department/ product is discontinued. So Common Fixed cost is distributed to lower departments.
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Higher-level performance reports should allocate both traceable
and common fixed costs to lower departments.
Select one:...
E11-3A. Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Inventory............
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eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget b...
eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget because they do not change when the level of activity 10 Which of the following statements is true? A. If activity is higher than expected, total fixed cos expected, total fixed costs should be lower than expected B Fixed costs should not be included in a flexible bu changes. A revenue variance is favorable if the actual revenue is greater...
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A...
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True or false 1. Indirect manufacturing costs are easily traceable to products. 2. One important reason...
True or false
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10 Which of the following statements is true? activity is higher than expected total fixed costs...
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Higher operating leverage: Select one: a. means higher proportion of fixed costs within a firm’s overall...
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In a ruby laser, an electron jumps from a higher energy level to a lower one....
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Traditional two-stage cost allocation means that indirect costs are first allocated to both operating and service...
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E11-3A. Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Inventory......... Equipment (average cost) .... Payroll...... Square feet of floor space ......... .................. Department A $ 80,000 $720,000 $405,000 18,000 Department B $288,000 $432,000 $360,000 9,000 Department C $112,000 $288,000 $135,000 3,000 During the year, the company's fixed expenses included the following: Depreciation on equipment....... Real estate taxes ................. Personal property taxes (on inventory and equipment) Personnel department expenses .... $140,000 48,000 28,800 225,000 Assume...
eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget because they do not change when the level of activity 10 Which of the following statements is true? A. If activity is higher than expected, total fixed cos expected, total fixed costs should be lower than expected B Fixed costs should not be included in a flexible bu changes. A revenue variance is favorable if the actual revenue is greater...
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory $100,000 $360,000 $140,000 Equipment (average cost) $900,000 $540,000 $360,000 Payroll $607,500 $540,000 $202,500 Square feet of floor space 27,000 13,500 4,500 During the year, the company's fixed expenses included the following: Depreciation on equipment $150,000 Real estate taxes 45,000 Personal property taxes (on inventory and equipment) 72,000 Personnel department expenses 75,000 Assume that the property tax rate is the...
True or false
1. Indirect manufacturing costs are easily traceable to products. 2. One important reason that managers allocate overhead costs to products is to promote the efficient use of resources. 3. U.S. Generally Accepted Accounting Principles require all manufacturing costs be allocated to products for inventory costing purposes. 4. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation is used. 5. The plant wide approach to allocating overhead is typically the simplest...
10 Which of the following statements is true? activity is higher than expected total fixed costs should be higher than expected. I civity is lower than expected, total fixed costs should be lower than expected Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. C A revenue variance is favorable if the actual revenue is greater than the revenue in the master (static planning) budget. A spending variance...
True/False Questions worth 2 pts each. 1. Self-imposed budgets prepared by lower-level managers should be scrutinized by higher levels of management 2. Budgets are used to plan and to control operations. 3. Fixed costs should be ignored when evaluating how well a manager has controlled costs. 4. A flexible budget can be used to estimate what revenues and costs should have been given the actual level of activity for the period. 5. An unfavorable spending variance may reflect waste as...
For the equation (Total cost 350+ 25(x), 350 is equal to fixed costs Select one: True O False Match The breakeven points isTotal costs < Total Revenue + The loss region is when Total costs Total Revenue A profit is attained when Total costs Total Revenue #
In a ruby laser, an electron jumps from a higher energy level to a lower one. If the energy difference between the two levels is 1.79 ev, what is the wavelength of the emitted photon? Select one a. 469 nm b. 649 nm C. 694 nm d. 964 nm
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