Chap11

Páginas: 34 (8432 palabras) Publicado: 26 de septiembre de 2012
CHAPTER 15
ALLOCATION OF SUPPORT DEPARTMENT COSTS,
COMMON COSTS, AND REVENUES

TRUE/FALSE

1. The dual cost-allocation method classifies costs into two pools, a budgeted cost pool and an actual cost pool.

Difficulty: 1 Objective: 1
Terms to Learn: dual-rate cost-allocation method
The dual cost-allocation method classifies costs into two pools, a variable cost pool and a fixed costpool.

2. Using the single-rate method transforms the fixed costs per hour into a variable cost to users of that facility.

Difficulty: 3 Objective: 1
Terms to Learn: single-rate cost-allocation method

3. The single-rate cost-allocation method provides better information for decision making than the dual-rate method.

Difficulty: 2 Objective: 1
Terms to Learn: single-ratecost-allocation method, dual-rate cost-allocation method
The dual-rate cost-allocation method provides better information for decision making than the single-rate method.

4. An advantage of the single-rate method is that it is easier and always the most accurate cost-allocation choice.

Difficulty: 2 Objective: 1
Terms to Learn: single-rate method
The single-rate method is the easiest costallocation method, but it is the least accurate cost-allocation choice.

5. When budgeted cost-allocation rates are used, user-division managers face uncertainty about the allocation rates for that budget period.

Difficulty: 2 Objective: 2
Terms to Learn: single-rate cost-allocation method, dual-rate cost-allocation method
When budgeted cost-allocation rates are used, user-division managersface no uncertainty about the allocation rates for that budget period.

6. When budgeted cost-allocation rates are used, managers of the supplier division are motivated to improve efficiency.

Difficulty: 2 Objective: 2
Terms to Learn: single-rate cost-allocation method, dual-rate cost-allocation method

7. When budgeted cost-allocation rates are used, variations in actual usage by onedivision affect the costs allocated to other divisions.

Difficulty: 2 Objective: 2
Terms to Learn: single-rate cost-allocation method, dual-rate cost-allocation method
When actual cost-allocations rates are used, variations in actual usage by one division affect the costs allocated to other divisions.

8. The only choices that a firm has for support department cost allocation rates are touse either a budgeted rate or an actual rate.

Difficulty: 2 Objective: 2
Terms to Learn: single-rate method, dual-rate method
The choices a firm has for support department cost allocation rates include using a budgeted rate, an actual rate, or some negotiated rate.

9. The direct allocation method highlights recognition of services rendered by support departments to other supportdepartments.

Difficulty: 2 Objective: 3
Terms to Learn: direct allocation method
The direct allocation method allows for no recognition of services rendered by support departments to other support departments.

10. The reciprocal allocation method incorporates mutual services provided among all support departments.

Difficulty: 2 Objective: 3
Terms to Learn: reciprocal allocation method11. Budgeted amounts for a support department will always exceed complete reciprocated costs for that department.

Difficulty: 3 Objective: 3
Terms to Learn: complete reciprocated costs, support department
Complete reciprocated costs equal budgeted amounts for the support department plus any interdepartmental cost allocations, therefore, complete reciprocated costs always exceed budgetedamounts.

12. The direct allocation method provides key information for outsourcing decisions regarding support services.

Difficulty: 3 Objective: 3
Terms to Learn: support department, direct allocation method
Complete reciprocal costs of a support department provide key information for outsourcing decisions regarding support services. The direct allocation method does not provide this...
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