If two support departments service the same number of departments, which support department's costs should be allocated first when using the sequential method?   The support department with the least cost. The support department that provides the least support to other support departments. The support department that provides the most support to other support departments. The support department that provides the most support to the producing departments

Q: Vhich of the following statements Is true with regard to activity-based costing? Multiple Cholce…

A: Activity Cost: It is a cost-effective method that identifies the activities in an organization and…

Q: What are the three methods of departmental cost allocation? Explain how they differ, which is…

A: Departmental cost allocation Departmental cost allocation refers to the allocation of overhead…

Q: Using the direct method, what amount of Warehouse Department costs will be allocated to Department…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which one of the following statements is incorrect? A. The reciprocal method is rarely used in…

A: The following statement is Incorrect:: In the step method, any amount of the allocation base that is…

Q: Regardless of the system used In departmental cost analysis: Multiple Cholce Total departmental…

A: Direct cost like materials and labor are not allocated but indirect cost like overhead cost is…

Q: What is conceptually the most defensible method for allocating support-department costs? Why?

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Activity-based costing is preferable in a system: A. when multiple products have similar product…

A: ABC is an accounting method that is used to trace the total cost of activities necessary to make a…

Q: There are two types of costs originating from the modern agency problem: direct costs and indirect…

A: Costs The expenditure incurred on that is imputable to ascertain the value of a given item is…

Q: Why are cost centers considered to be more appropriate than profit centers for production…

A:

Q: Required: 1. Distribute the departmental costs to the college's three divisions based on the…

A: Calculation of Allocation base     Budgeted Enrolment Budget Credit Hours Planned Course…

Q: Which of the following is the most difficult but most accurate of the commonly used methods for…

A: The cost of support departments is allocated to the production departments. Some a support…

Q: Indirect costs occur when? A. Resources are shared by more than one product or service. B. Costs…

A: All those expenses that are incurred in common for different projects, products, or business…

Q: When allocating support department costs, managers must identify cost pools.  The choice of cost…

A: Cost pools represents the various cost incurred in the production process of the company that have…

Q: Compute for the total cost transferred to the next department using average costing.

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: In choosing the cost pool, the simplest allocation method is

A: In choosing the cost pool, the simplest allocation method is b. Activity center allocation

Q: Discuss two different criteria Mr. Smith can use to determine the sequence for allocating support…

A: Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

Q: Which of the following statements about ABC is not correct? answer choices When forming activity…

A: Answer:-  Activity-based costing (ABC)= Activity-based costing (ABC) is a kind of method of costing…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: Support departments are those departments which helps or provides support to other operation…

Q: Activity-based costing is preferable in a system when multiple products have similar product…

A: Under activities based accounting, the overhead cost is applied to different activities differently.…

Q: Activity-based costing is preferable in a system: Group of answer choices A. when multiple products…

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…

Q: Use the following data to prepare a model that allocates the support departments using the three…

A: Sequential Method:  Under this method cost of the support department is distributed to the remaining…

Q: The order in which the costs of service departments are allocated will affect the amounts allocated…

A: There are two type of departments in the business. One is operating departments and other is Service…

Q: In general, what oconditions would lead to greater differences in the amounts allocated to operating…

A: Service departments or cost centers are those departments which provide services to other…

Q: Which service department cost allocation method provides for reciprocal allocation of service costs…

A: The correct answer is (A) Method of Algebra or Algebraic Method

Q: Help question 33

A: Answer: Option C is the correct answer.

Q: activity-based costing is preferable in a system a) when multiple products have similiar product…

A: To assign overhead costs to products, the methodology which is used is called Activity-Based…

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

Q: The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the…

A: The reciprocal technique allocates expenditures incurred y service departments to other departments…

Q: activity -based costing over traditional volume -based allocation method

A: Definition: Activity Based Costing: The costing method which identifies the activities of an…

Q: LEASE COMPLETE THE TABLE WITH SUITABLE COST DRIVERS, FOR A PROJECT-BASED CUNSTRUCTION COMPANY. Cost…

A: Cost drivers – A cost driver is cost element which influences the costs of different variable OHDs…

Q: How to allocate indirect costs to multiple departments using an ABC costing driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Which of the following methods recognizes some (but not all) of the services that occur between…

A: Services- It is an intangible thing which can not be seen by any person but anyone can feel it like…

Q: Which of the following statements is true with regard to activity-based costing?   Multiple Choice…

A: The overhead is applied to the production using various methods as traditional costing and activity…

Q: ion for division of indirect costs among departments. Provide a hypothetical example in which at…

A: Departmental income statements are prepared to assess the relative profitability of each department.…

Q: If a division manager’s compensation is based upon the division’s net income, the manager may decide…

A: Absorption costing is a method of costing in which total cost whether fixed or variable will be…

Q: Explain briefly the main differences between the direct, step-down, and reciprocal-services methods…

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: The only method of allocation of service department costs to producing departments that considers…

A: There are only three methods for allocating  service department  costs to production/producing…

Q: hich of the following statements regarding the allocation of cost from other departments to the…

A: Allocation of Cost: It is the method of providing help to given the service organization's cost. The…

Q: s it true that the direct method is a method of cost allocation that charges costs of service…

A: Direct Method- Direct method refers to the method under which the cost of the service department is…

Q: Which method of allocating support department costs is most accurate of the three methods.

A:

Q: Which of the following statements is not an Objective of the cost management system Select one: a.…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: The support department allocation method that is the most widely used because of its simplicity is…

A: Direct method of overhead allocation means a method where overhead of support department is direct…

Q: Which of the following is a benefit of activity-based cost management system? a.It makes it easy to…

A: Activity based costing is a method of allocating indirect costs to the products or services based on…

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost:   It is the monetary value incurred by a company to produce a product or a service.

Q: How to allocate indirect costs to multiple departments using an ABC cost driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Service departments are sometimes called indeterminate cost centers, while production departments…

A: Many firms need support activities also as core activities to provide their product and/or services.…

Q: What is a potential disadvantage of the reciprocal method? a. It is the most complex method of cost…

A: Reciprocal method: It is the method in which the allocation of costs spent on other departments by…

Q: Which of the following statements is true with regard to activity-based costing? Multiple Cholce…

A: Activity-based costing is a method of costing that identify activities in an business and assigns…

Q: Cost Drivers for Support Department Allocations For each of the following support departments,…

A: Cost driver is any factor which causes a change in the cost of an activity.

Q: same industry for same product b.the same firm for same product c.the several firm for same…

A: b. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.