Fundementals Of Cost Accounting Seventh Edition-McGraw Hill- ACCT521 CH 11 QUESTIONS Week 5.docx

Regarding service department allocations, user departments can be Blank______ departments. Multiple select question. marketing correct other service correct production correct other user Correct Answer  marketing  other service  production Methods to allocate service department costs are the direct Blank 1 Blank 1 direct , Correct Unavailable, reciprocal Blank 2 Blank 2 reciprocal , Correct Unavailable, and step Blank 3 Blank 3 step , Correct Unavailable methods. (Enter only one word per blank.) Correct Answer  Blank 1: direct  Blank 2: step  Blank 3: reciprocal The direct method allocates costs to the final user of a service, Blank______. Multiple choice question. including intermediate users after allocating to other service departments incorrect ignoring intermediate users Correct Answer ignoring intermediate users

Which of the following are true of the step method? Multiple select question. Service department costs are allocated directly to user departments, ignoring intermediate users. The order of allocation can impact the percentage of service costs ignored in the allocation process. correct Once an allocation is made from a service department, no further allocations are made back to that department. correct Allocations must be made first from the service department that has provided the smallest proportion of its total services to other service departments. Correct Answer  The order of allocation can impact the percentage of service costs ignored in the allocation process.  Once an allocation is made from a service department, no further allocations are made back to that department. All services provided by any service department including services provided to other service departments are recognized when using the reciprocal Blank 1 Blank 1 reciprocal , Correct Unavailable method. (Enter only one word per blank.) Correct Answer  Blank 1: reciprocal Examples of service departments include Blank______. Multiple select question. production department human resources correct information systems correct Correct Answer

 human resources  information systems The step method will Blank______ result in allocations that are nearer those obtained using the reciprocal method. Multiple choice question. always sometimes correct never Correct Answer sometimes Methods to allocate service department costs are the Blank______ methods. Multiple select question. direct correct step correct reciprocal correct mixed Correct Answer  direct  step  reciprocal Estimating the cost savings from eliminating a particular department is reasonably straightforward Blank______. Multiple choice question. as long as service costs are allocated used the direct method whether or not service departments serve other service departments when there are no reciprocal services correct Correct Answer when there are no reciprocal services

The cost allocation method that charges service costs to user departments without making allocations between or among service departments is called the direct Blank 1 Blank 1 direct , Correct Unavailable method. (Enter only one word per blank.) Correct Answer  Blank 1: direct The method that allocates some service department costs to other service departments is called the direct Blank 1 Blank 1 direct , Incorrect Unavailable method. (Enter only one word per blank.) Correct Answer  Blank 1: step Total Service Department Costs = Direct Costs of the Service Department + Cost Allocated to the Service Department is the equation form of the Blank______ method. Multiple choice question. mixed direct step reciprocal correct Correct Answer reciprocal The cost of a manufacturing process with two or more outputs is called a(n) joint Blank 1 Blank 1 joint , Correct Unavailable cost. (Enter only one word per blank.) Correct Answer  Blank 1: joint

Which of the following statements are correct? Multiple select question. Cost allocation is somewhat arbitrary, regardless of the method chosen. correct All three methods of cost allocation are still in use today. correct The step method of allocating service costs is always superior to the direct method. Reason: This may or may not be true. Correct Answer  Cost allocation is somewhat arbitrary, regardless of the method chosen.  All three methods of cost allocation are still in use today. Processing costs incurred prior to the split Blank 1 Blank 1 split , Correct Unavailable- off Blank 2 Blank 2 off , Correct Unavailable point Blank 3 Blank 3 point , Correct Unavailable are the joint costs. (Enter only one word per blank.) Correct Answer  Blank 1: split  Blank 2: off  Blank 3: point or points If there are no reciprocal services among the service departments, the cost savings from eliminating a particular department would generally include Blank______. Multiple select question. variable costs correct avoidable fixed costs incorrect unavoidable fixed costs

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help