Question : 61.Pets ‘n Pals attempting to determine the cost of operating : 1257132

 

 

61.Pets ‘n Pals is attempting to determine the cost of operating a particular store. Which of the following costs would be classified as an indirect cost?   

A. Fees paid to external accountant for corporate audit

 

B. Cost of operating company owned vehicles by the store

 

C. Salary of store manager

 

D. Cost of aquariums used to display exotic fish

 

 

62.Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?   

A. Number of employees

 

B. Number of customers

 

C. Square footage of office space

 

D. Both number of employees and square footage of office space are correct.

 

 

63.Indirect costs are often pooled, and not allocated individually because:   

A. individualallocation would be more timely.

 

B. individual allocation would be more accurate.

 

C. individual allocation would be tedious.

 

D. the benefits of individual allocation of indirect costs are greater than the costs.

 

 

64.Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following should not be treated as direct costs, assuming the cost object is individual clocks?   

A. The clock face

 

B. The timing mechanism for each clock

 

C. Wood

 

D. Depreciation on clock-making equipment

 

 

65.Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?   

A. Salary of the clock production supervisor

 

B. Depreciation on the factory building

 

C. Depreciation on clock-making equipment

 

D. All of these answers are correct.

 

 

66.Which of the following regarding direct costs is a correct statement?   

A. Direct costs are always fixed costs.

 

B. Direct costs are always variable costs.

 

C. Direct costs are easily traced to cost objects.

 

D. Direct costs are never selling and administrative expenses.

 

 

67.Which of the followings statements is correct regarding direct and indirect costs?   

A. Direct costs cannot easily be traced to a cost object, whereas indirect costs can be easily traced to a cost object.

 

B. Direct costs can be easily traced to a cost object, whereas indirect costs cannot be easily traced to a cost object.

 

C. Direct costs are always relevant to a particular cost decision, whereas indirect costs are never relevant to a cost decision.

 

D. Direct costs are never relevant to a particular cost decision, whereas indirect costs are always relevant to a cost decision.

 

 

68.All of the following are examples of indirect costs that can be classified as being variable costs except:   

A. Utilities.

 

B. Material handling costs.

 

C. Production supervisor salaries.

 

D. Transportation costs.

 

 

69.Which formula best represents the first step used to allocate an indirect cost to a cost object?   

A. Total cost to be allocated/cost driver

 

B. Cost driver/allocation rate

 

C. Cost driver/total cost to be allocated

 

D. Allocation rate/total cost to be allocated

 

 

70.Assume that a factory seeks to allocate rent to several departments that occupy the factory. The factory is occupied by all the departments. Which of the following is the most logical cost driver for allocating the factory rent?   

A. Number of employees

 

B. Square footage occupied by each department

 

C. Machine hours

 

D. Number of labor hours in each department

 

 

 

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