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| 1 | |
Which of the following is a service department? |
| | A) | Human Resources Department |
| | B) | Accounting Department |
| | C) | Maintenance Department |
| | D) | All of the above |
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| 2 | |
In which method of service department cost allocation are service department costs allocated directly to production departments? |
| | A) | Direct method. |
| | B) | Dual cost method. |
| | C) | Reciprocal-services method. |
| | D) | Step-down method. |
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| 3 | |
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Use the direct method of service department cost allocation and determine the amount of the service department costs that will be charged to the Furniture Department. |
| | A) | $ 62,150 |
| | B) | $ 45,100 |
| | C) | $ 30,400 |
| | D) | $141,250 |
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| 4 | |
The method of service department cost allocation in which service department costs are allocated first to service departments and then to production departments is called the |
| | A) | Direct method. |
| | B) | Dual cost method. |
| | C) | Reciprocal-services method. |
| | D) | Step-down method. |
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| 5 | |
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Power Department costs are $26,000. Maintenance Department costs are $30,000. Personnel Department costs are $4,000. The Personnel Department provides services to all departments. Use the step-down method of service department cost allocation and determine the mount of service department costs (Personnel, Power, and Maintenance) will be charged to the Furniture Department. |
| | A) | $41,210 |
| | B) | $31,710 |
| | C) | $18,790 |
| | D) | $28,290 |
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| 6 | |
Which method of service department cost allocation accounts for the mutual provision of reciprocal services among all service departments? |
| | A) | Direct method. |
| | B) | Dual cost method. |
| | C) | Reciprocal-services method. |
| | D) | Joint-cost method. |
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| 7 | |
Which method of service department cost allocation allocates variable costs in proportion to short-run usage and allocates fixed costs in proportion to long-run usage? |
| | A) | Direct method. |
| | B) | Joint-cost method. |
| | C) | Reciprocal-services method. |
| | D) | Dual cost allocation. |
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| 8 | |
Which method of service department cost allocation provides the more accurate method of department cost allocation and does not ignore the fact that some service departments may perform services for other service departments? |
| | A) | Direct method. |
| | B) | Step-down method. |
| | C) | Reciprocal-services method. |
| | D) | Dual cost allocation. |
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| 9 | |
Which method of service department cost allocation allocates fixed and variable costs separately in service department cost allocation? |
| | A) | Direct method. |
| | B) | Step-down method. |
| | C) | Reciprocal-service method. |
| | D) | Dual cost allocation approach . |
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| 10 | |
When budgeted service department costs are allocated to production departments (much like the allocation of manufacturing overhead to the Work in Process account), any variance between allocated budgeted costs and actual costs is called a variance. Which is the correct way to dispose of this variance? |
| | A) | Allocate it among the production departments on some basis. |
| | B) | Close it to the Cost of Goods Sold account. |
| | C) | Close it against the period's income. |
| | D) | Close it to the Work in Process account. |
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| 11 | |
Which of the following statements is true? |
| | A) | Under the two-stage allocation of department overhead, departments play a key role as intermediate cost objects. |
| | B) | Under an ABC approach to department overhead, activities play a key role as intermediate cost objects. |
| | C) | The breakdown of costs by activity in an ABC system is much finer than a breakdown by departments. |
| | D) | All of the above are true. |
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| 12 | |
Which of the following statements is true? |
| | A) | A joint production process results in two or more products. |
| | B) | The point at which joint products are sold is called the split-off point. |
| | C) | Joint costs are the costs associated with joint products after the split-off point. |
| | D) | The separable cost of processing is the cost of converting a raw material into joint products. |
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| 13 | |
Which method of joint cost allocation allocates the joint cost to the joint products in proportion to the net realizable value of each joint product? |
| | A) | Net-realizable-value method. |
| | B) | Physical-units method. |
| | C) | Relative-sales-value method. |
| | D) | Physical-value method. |
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| 14 | |
Which method of joint cost allocation allocates the joint cost to the joint products in proportion to their physical quantities? |
| | A) | Net-realizable-value method. |
| | B) | Physical-units method. |
| | C) | Relative-sales-value method. |
| | D) | Physical-value method. |
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| 15 | |
Which method of joint cost allocation allocated the joint cost to joint products in proportion to their total sales values at the split-off point? |
| | A) | Net-realizable-value method. |
| | B) | Physical-units method. |
| | C) | Relative-sales-value method. |
| | D) | Physical-value method. |
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| 16 | |
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Joint product costs are $45,000. Use the physical-units method of joint product cost allocation and determine the joint product cost allocated to Joint Product A at the split-off point. |
| | A) | $ 9,000 |
| | B) | $18,000 |
| | C) | $27,000 |
| | D) | $40,000 |
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Joint product costs are $45,000. Use the relative-sales value method of joint product cost allocation and determine the joint product cost of Product A at the split-off point. |
| | A) | $21,600 |
| | B) | $18,000 |
| | C) | $14,143 |
| | D) | $15,400 |
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| 18 | |
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Joint product costs are $45,000. Use the net-realizable-value method of joint product cost allocation and determine the joint product cost of Product A at the split-off point. |
| | A) | $30,857 |
| | B) | $14,443 |
| | C) | $14,143 |
| | D) | $18,500 |
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| 19 | |
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Joint product costs are $5,000. Use the net-realizable-value method of joint product cost allocation and determine the sales value of the final productsof Product A and Product B. |
| | A) | $40,000 and $30,000, respectively |
| | B) | $68,000 and $17,000, respectively |
| | C) | $36,000 and $29,000, respectively |
| | D) | $28,000 and $42,000, respectively |
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