Sunday, May 27, 2012

The single-rate cost-allocation method may base the denominator choice on

ACCOUNTING

Multiple Choice

The single-rate cost-allocation method may base the denominator choice on

a. master-budget capacity utilization.

b. normal capacity utilization.

c. practical capacity.

d. any of the above.

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The dual-rate cost-allocation method classifies costs in each cost pool into two pools

ACCOUNTING

Multiple Choice

The dual-rate cost-allocation method classifies costs in each cost pool into two pools

a. a budgeted-cost pool and an actual-cost pool.

b. a variable-cost pool and a fixed-cost pool.

c. a used-capacity-cost pool and a practical-capacity-cost pool.

d. a direct-cost pool and a reciprocal-cost pool.

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The method that allocates costs in each cost pool using the same rate per unit is known as the

ACCOUNTING

Multiple Choice

The method that allocates costs in each cost pool using the same rate per unit is known as the

a. incremental cost-allocation method.

b. reciprocal cost-allocation method.

c. single-rate cost allocation method.

d. dual-rate cost-allocation method.

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Saturday, May 26, 2012

It is most appropriate to base revenue allocation on the number of physical units when individual products in the bundle are of unequal value

ACCOUNTING

True or False

It is most appropriate to base revenue allocation on the number of physical units when individual products in the bundle are of unequal value

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Under the incremental revenue-allocation method, there is an incentive to be the first-ranked user

ACCOUNTING

True or False

Under the incremental revenue-allocation method, there is an incentive to be the first-ranked user

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The stand-alone method may use selling price or unit costs to allocate revenues

ACCOUNTING

True or False

The stand-alone method may use selling price or unit costs to allocate revenues

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Revenue allocation is required to determine the profitability of individual items within a bundled product

ACCOUNTING

True or False

Revenue allocation is required to determine the profitability of individual items within a bundled product

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