Question : 71.Which of the following not an important factor in determining : 1257133

 

 

71.Which of the following is not an important factor in determining the appropriate cost driver to use in allocating a cost?   

A. A cause-and-effect relationship between the cost and the cost driver

 

B. The availability of information about the cost and cost driver

 

C. The ability of the cost driver to allocate indirect costs to cost objects

 

D. All of these are important factors in determining the appropriate cost driver to use in allocating a cost.

 

 

72.Joint products are:   

A. easily traced to products.

 

B. similar products that result from a common process.

 

C. different products that result from a common process.

 

D. differentproducts that are combined to create a single product.

 

 

73.The split off point:   

A. is the point at which production of joint products begins.

 

B. is the point at which joint products become unidentifiable.

 

C. refers to the point where title to goods sold passes from the seller to the buyer.

 

D. is the point at which joint products separated from each other.

 

 

74.Which of the following best describes the term used to assign indirect costs to a cost object?   

A. Cost tracing

 

B. Cost allocation

 

C. Cost assignment

 

D. Cost accumulation

 

 

75.The following are Acme’s production costs for the quarter ended September 30th:   What amount of costs should be traced to specific products in the process?   

A. $150,000

 

B. $175,000

 

C. $225,000

 

D. $325,000

 

 

76.Alleghany Community College operates four departments. The square footage used by each department is shown below.  Alleghany’s annual building rental cost is $320,000.What amount of rent expense that should be allocated to the Technology Department?   

A. $60,000

 

B. $80,000

 

C. $120,000

 

D. $192,000

 

 

77.Alleghany Community College operates four departments. The square footage used by each department is shown below.  Alleghany’s annual building rental cost is $320,000What amount of rent expense that should be allocated to the Sciences Department?   

A. $60,000

 

B. $80,000

 

C. $120,000

 

D. $106,667

 

 

78.Which of the following statements is incorrect?   

A. A predetermined overhead rate may be used to allocate overhead costs when volume varies during the year.

 

B. A predetermined overhead rate is calculated using actual cost and volume data.

 

C. A predetermined overhead rate is calculated by dividing costs by volume, using a measure of volume such as direct labor hours or direct materials cost.

 

D. A company may need to allocate overhead costs to products to make pricing decisions for the products.

 

 

79.Nature’s Soap manufactures Bar soap and Liquid soap. Of the following costs, which would be an indirect cost to the Liquid Department?   

A. Liquid manager’s salary

 

B. Manufacturing plant insurance

 

C. Depreciation of the liquefying equipment

 

D. Liquid Fragrance