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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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SOLUTION
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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SOLUTION
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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SOLUTION
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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SOLUTION
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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SOLUTION
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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SOLUTION
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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SOLUTION
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