Related Mcqs:

1. Support department cost allocation method which makes no difference between variable and fixed costs is classified as ___________?

   A. sales mix allocation method
   B. dual-rate cost-allocation method
   C. single rate cost allocation method
   D. quantity variance allocation method

2. If the cost of indirect support labor is $5000, equipment maintenance setup cost is $7000 and machinery leasing cost is $4000 then variable fixed cost will be ___________?

   A. $16,000
   B. $12,000
   C. $18,000
   D. $21,000

3. The method, which allocates the cost of support department, to operating and support departments is known as ___________?

   A. indirect method
   B. direct method
   C. step down method
   D. reciprocal method

4. In dependent variable cost pool, the relationship between individual cost items and cost drivers can be classified as ___________?

   A. non homogeneous relationship
   B. homogeneous relationship
   C. an internal relationship
   D. an extreme relationship

5. The method, which allocates cost of support department for operating departments by recognizing all the mutual services provided is classified as ___________?

   A. indirect method
   B. direct method
   C. step down method
   D. reciprocal method

6. The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as ___________?

   A. complete reciprocal costs
   B. artificial costs
   C. operating costs
   D. flexible operating costs

7. If the total setup cost is $42000 and fixed setup cost is $17000, then the variable fixed cost would be ____________?

   A. $59,000
   B. $25,000
   C. $15,000
   D. $39,000

8. If the total setup cost is $35000 and fixed setup cost is $19000, then the variable fixed cost would be _____________?

   A. $16,000
   B. $54,000
   C. $64,000
   D. $74,000

9. The method which allocates the cost of support department to only operating departments is called ___________?

   A. indirect method
   B. direct method
   C. step down method
   D. reciprocal method

10. If the budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then the budgeted indirect cost rate will be __________?

    A. 67.30%
    B. 87.31%
    C. 55.50%
    D. 45.50%