Question :
51. A difficult problem in calculating the total costs and expenses : 1225597
51. 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.
52. A company has two departments, A and B that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicates that Dept. A had a direct expense of $1,000 for deliveries and Dept. B had no direct expense. The indirect expenses are $8,000. The analysis also indicates that 60% of regular delivery requests originate in Dept. A and 40% originate in Dept. B. Departmental delivery expenses for Dept. A and Dept. B, respectively, are:
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.
53. 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.
54. 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. Proportion of sales of each department.
55. Costs that the manager has the power to determine or at least strongly influence are called:
A. Uncontrollable costs.
B. Controllable costs.
C. Joint costs.
D. Direct costs.
E. Indirect costs.
56. A report that accumulates the actual costs that a manager is responsible for and their budgeted amounts is a:
A. Segmental accounting report.
B. Managerial cost report.
C. Controllable expense report.
D. Departmental accounting report.
E. Responsibility accounting performance report.
57. An accounting system that provides information that management can use to evaluate the performance of a department’s manager is called a:
A. Cost accounting system.
B. Managerial accounting system.
C. Responsibility accounting system.
D. Financial accounting system.
E. Activity-based accounting system.
58. Costs that the manager does not have the power to determine or at least strongly influence are:
A. Variable costs.
B. Uncontrollable costs.
C. Indirect costs.
D. Direct costs.
E. Joint costs.
59. Plans that identify costs and expenses under each manager’s control prior to the reporting period are called:
A. Cost accounting systems.
B. Managerial accounting systems.
C. Responsibility accounting systems.
D. Responsibility accounting budgets.
E. Activity-based accounting systems.
60. Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:
A. A payroll clerk.
B. A cost center manager.
C. A production line worker.
D. A maintenance worker.
E. All of these.
