41. A department that incurs costs without directly generating revenues is a:A.  Service centerB.  Production centerC.  Profit centerD.  Cost centerE.  Performance center

42. Regardless of the system used in departmental cost analysis:A.  Direct costs are allocated, indirect costs are not.B.  Indirect costs are allocated, direct costs are not.C.  Both direct and indirect costs are allocated.D.  Neither direct nor indirect costs are allocated.E.  Total departmental costs will always be the same.

43. An expense that does not require allocation between departments is a(n):A.  Common expense.B.  Indirect expense.C.  Direct expense.D.  Administrative expense.E.  Overhead expense.

44. Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:A.  Direct expensesB.  Indirect expensesC.  Controllable expensesD.  Uncontrollable expensesE.  Fixed expenses

45. Expenses that are not easily associated with a specific department, and which are incurred for the benefit of more than one department, are:A.  Fixed expensesB.  Indirect expensesC.  Direct expensesD.  Uncontrollable expenses

E.  Variable expenses

46. The salaries of employees who spend all their time working in one department are:A.  Variable expensesB.  Indirect expensesC.  Direct expensesD.  Responsibility expensesE.  Unavoidable expenses

47. A difficult problem in calculating the total costs and expenses of a department is:A.  Determining the gross profit ratio.B.  Assigning direct costs to the department.C.  Assigning indirect expenses to the department.D.  Determining the amount of sales of the department.E.  Determining the direct expenses of the department.

48. A company has two departments, Aa and Bb, that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Aa had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. Bb. The analysis also indicates that 60% of regular delivery requests originate in Dept. Aa and 40% in Dept. Bb. The delivery expenses that should be charged to Dept. Aa and Dept. Bb, respectively, are: 

Aa

Bb

A.

$4,500

$4,500

B.

$5,800

$3,200

C.

$5,500

$3,500

D.

$5,500

$4,500

E.

$5,400

$3,600

49. The allocation bases for assigning indirect costs include:A.  Only physical bases.B.  Only cost bases.C.  Only value bases.D.  Only unit bases.E.  Any appropriate and reasonable bases.

50. The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be:A.  Floor space of each department.B.  Relative number of items each department had on sale.C.  Number of customers to enter each department.D.  An equal amount of cost for each department.E.  Total sales of each department.

41. A department that incurs costs without directly generating revenues is a:A.  Service centerB.  Production centerC.  Profit centerD.  Cost centerE.  Performance center

42. Regardless of the system used in departmental cost analysis:A.  Direct costs are allocated, indirect costs are not.B.  Indirect costs are allocated, direct costs are not.C.  Both direct and indirect costs are allocated.D.  Neither direct nor indirect costs are allocated.E.  Total departmental costs will always be the same.

43. An expense that does not require allocation between departments is a(n):A.  Common expense.B.  Indirect expense.C.  Direct expense.D.  Administrative expense.E.  Overhead expense.

44. Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:A.  Direct expensesB.  Indirect expensesC.  Controllable expensesD.  Uncontrollable expensesE.  Fixed expenses

45. Expenses that are not easily associated with a specific department, and which are incurred for the benefit of more than one department, are:A.  Fixed expensesB.  Indirect expensesC.  Direct expensesD.  Uncontrollable expenses

E.  Variable expenses

46. The salaries of employees who spend all their time working in one department are:A.  Variable expensesB.  Indirect expensesC.  Direct expensesD.  Responsibility expensesE.  Unavoidable expenses

47. A difficult problem in calculating the total costs and expenses of a department is:A.  Determining the gross profit ratio.B.  Assigning direct costs to the department.C.  Assigning indirect expenses to the department.D.  Determining the amount of sales of the department.E.  Determining the direct expenses of the department.

48. A company has two departments, Aa and Bb, that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Aa had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. Bb. The analysis also indicates that 60% of regular delivery requests originate in Dept. Aa and 40% in Dept. Bb. The delivery expenses that should be charged to Dept. Aa and Dept. Bb, respectively, are: 

Aa

Bb

A.

$4,500

$4,500

B.

$5,800

$3,200

C.

$5,500

$3,500

D.

$5,500

$4,500

E.

$5,400

$3,600

49. The allocation bases for assigning indirect costs include:A.  Only physical bases.B.  Only cost bases.C.  Only value bases.D.  Only unit bases.E.  Any appropriate and reasonable bases.

50. The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be:A.  Floor space of each department.B.  Relative number of items each department had on sale.C.  Number of customers to enter each department.D.  An equal amount of cost for each department.E.  Total sales of each department.

41. A department that incurs costs without directly generating revenues is a:A.  Service centerB.  Production centerC.  Profit centerD.  Cost centerE.  Performance center

42. Regardless of the system used in departmental cost analysis:A.  Direct costs are allocated, indirect costs are not.B.  Indirect costs are allocated, direct costs are not.C.  Both direct and indirect costs are allocated.D.  Neither direct nor indirect costs are allocated.E.  Total departmental costs will always be the same.

43. An expense that does not require allocation between departments is a(n):A.  Common expense.B.  Indirect expense.C.  Direct expense.D.  Administrative expense.E.  Overhead expense.

44. Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:A.  Direct expensesB.  Indirect expensesC.  Controllable expensesD.  Uncontrollable expensesE.  Fixed expenses

45. Expenses that are not easily associated with a specific department, and which are incurred for the benefit of more than one department, are:A.  Fixed expensesB.  Indirect expensesC.  Direct expensesD.  Uncontrollable expenses

E.  Variable expenses

46. The salaries of employees who spend all their time working in one department are:A.  Variable expensesB.  Indirect expensesC.  Direct expensesD.  Responsibility expensesE.  Unavoidable expenses

47. A difficult problem in calculating the total costs and expenses of a department is:A.  Determining the gross profit ratio.B.  Assigning direct costs to the department.C.  Assigning indirect expenses to the department.D.  Determining the amount of sales of the department.E.  Determining the direct expenses of the department.

48. A company has two departments, Aa and Bb, that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. Aa had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. Bb. The analysis also indicates that 60% of regular delivery requests originate in Dept. Aa and 40% in Dept. Bb. The delivery expenses that should be charged to Dept. Aa and Dept. Bb, respectively, are: 

Aa

Bb

A.

$4,500

$4,500

B.

$5,800

$3,200

C.

$5,500

$3,500

D.

$5,500

$4,500

E.

$5,400

$3,600

49. The allocation bases for assigning indirect costs include:A.  Only physical bases.B.  Only cost bases.C.  Only value bases.D.  Only unit bases.E.  Any appropriate and reasonable bases.

50. The most useful allocation basis for the departmental costs of an advertising campaign for a storewide sale is likely to be:A.  Floor space of each department.B.  Relative number of items each department had on sale.C.  Number of customers to enter each department.D.  An equal amount of cost for each department.E.  Total sales of each department.

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