Question : 11) Which of the following illustrates a purpose for allocating : 1186037

 

11) Which of the following illustrates a purpose for allocating costs to cost objects?

A) to provide information for economic decisions

B) to reduce competition

C) to determine employee benefit costs

D) to defer income and reduce taxes payable

E) to motivate employees

 

12) Deciding whether to make a component part or to purchase it, would be an example of which cost allocation purpose?

A) to provide information for economic decisions

B) to motivate managers

C) to determine employee’s wages

D) to measure income and assets for reporting to external parties

E) to motivate employees

13) For the economic decision purpose

A) the costs in all six business functions should be included.

B) costs for only one function is included.

C) period costs are not allocated.

D) costing is only related to product pricing.

E) only inventoriable costs under GAAP/IFRS should be included.

 

14) Which of the following criteria subsidizes poor performers at the expense of the best performers?

A) ability to bear

B) benefit received

C) causality

D) fairness and equity

E) benefits expended

 

15) The belief that a corporate division with higher sales ought to be allocated more of the company’s advertising costs because it must have derived more benefit from the expenditures than a division with lower sales, is an example of which criteria for cost allocation decisions?

A) ability to bear

B) benefits expended

C) causality

D) fairness and equity

E) benefit received

 

16) Which of the following is not a common criteria used to guide decisions related to cost allocations?

A) ability to bear

B) benefit received

C) causality

D) fairness and equity

E) stable market prices

17) Which of the following is the first step in the cost-allocation decision process?

A) Calculate the cost-allocation rate for each indirect cost pool.

B) Identify the purpose of the cost allocation.

C) Identify the direct inputs that are already measured.

D) Identify the relevant indirect costs included in the cost pool(s) or numerator(s).

E) Analyze the alternatives and select the best one for the denominator.

 

18) Which of the following is true concerning cost allocation in a multi-product company?

A) Where the indirect costs are variable and each product is assembled sequentially, the causality criterion can guide the choice of a cost allocation base.

B) Where the indirect costs are fixed and each product is assembled sequentially, the causality criterion can guide the choice of a cost allocation base.

C) Where the indirect costs are variable and each product is not assembled sequentially, the causality criterion can guide the choice of a cost allocation base.

D) Where the indirect costs are fixed and each product is not assembled sequentially, the causality criterion can guide the choice of a cost allocation base.

E) Where the indirect costs are variable and the products are produced jointly, it is not possible to identify specific cause-and-effect relationships between work on an individual product and total costs incurred.

 

19) Which purpose of cost allocation is used to encourage sales representatives to push high-margin products or services?

A) to provide information for economic decisions

B) to motivate managers and other employees

C) to justify costs

D) to measure income and assets for reporting to external parties

E) to compute reimbursement

 

20) Which purpose of cost allocation is used to decide on the selling price for a customized product or service?

A) to provide information for economic decisions

B) to motivate managers and other employees

C) to justify costs

D) to measure income and assets for reporting to external parties

E) to compute reimbursement

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more