WHICH OF THE FOLLOWING IS NOT AN OBJECTIVE FOR COMPUTING FULL COST?

service department provides specific functional tasks for other internal units.
Which of the following activities would not
be engaged in by a service department?

a. purchasing
b. warehousing
c. distributing
d. manufacturing

103. All of
the following objectives are reasons to allocate service department costs to
compute full cost exceptto

a. provide information on cost recovery.
b. abide by regulations that may require full costing in some instances.

c. provide information on controllable costs.
d. reflect production’s “fair share” of costs.

104. All of
the following objectives are reasons that service department allocations can
motivate managers except to

a. instill a consideration of support costs in production managers.

b. encourage production managers to help service departments control
costs.
c. encourage the usage of certain services.
d. determine divisional profitability.

105. Which of
the following is a reason for allocating service department costs and thereby
motivating management?

a. provides for cost recovery
b. provides relevant information in determining corporate-wide profits
generated by alternative actions
c. meets regulations in some pricing instances
d. reflects usage of services on a fair and equitable basis

106. Service
departments provide functional tasks for which of the following?

Internal units

External units

a.
no no

b. yes
no
c.
no yes

d. yes
yes

107. After
service department costs have been allocated, what is the final step in
determining full product cost?

a. determine direct material cost
b. determine overhead application rates for revenue-producing areas

c. determine direct labor cost
d. determine total service department costs

108. Which of
the following is not an objective
for computing full cost?

a. to reflect production’s “fair share” of costs
b. to instill a consideration of support costs
c. to reflect usage of services on a fair and equitable basis
d. to provide for cost recovery

109. A
rational and systematic allocation base for service department costs should
reflect the cost accountant’s consideration of all of the following except

a. the ability of revenue-producing departments to bear the allocated
costs.
b. the benefits received by the revenue-producing department from the
service department.
c. a causal relationship between factors in the revenue-producing
department and costs incurred in the service department.
d. all of the above are considerations.

110. Which of
the following is nota method for
allocating service department costs?

a. step method
b. indirect method
c. direct method
d. algebraic method

111. Which
service department cost allocation method assigns costs directly to revenue-producing
areas with no other intermediate cost pools or allocations?

a. step method
b. indirect method
c. algebraic method
d. direct method

102. A
service department provides specific functional tasks for other internal units.
Which of the following activities would not
be engaged in by a service department?a. purchasingb. warehousingc. distributingd. manufacturing103. All of
the following objectives are reasons to allocate service department costs to
compute full cost excepttoa. provide information on cost recovery.b. abide by regulations that may require full costing in some instances.
c. provide information on controllable costs.d. reflect production’s “fair share” of costs.104. All of
the following objectives are reasons that service department allocations can
motivate managers except toa. instill a consideration of support costs in production managers.
b. encourage production managers to help service departments control
costs.c. encourage the usage of certain services.d. determine divisional profitability.105. Which of
the following is a reason for allocating service department costs and thereby
motivating management?a. provides for cost recoveryb. provides relevant information in determining corporate-wide profits
generated by alternative actionsc. meets regulations in some pricing instancesd. reflects usage of services on a fair and equitable basis106. Service
departments provide functional tasks for which of the following?

Internal unitsExternal unitsa.
no no
b. yes
noc.
no yes
d. yes
yes107. After
service department costs have been allocated, what is the final step in
determining full product cost?a. determine direct material costb. determine overhead application rates for revenue-producing areas
c. determine direct labor costd. determine total service department costs108. Which of
the following is not an objective
for computing full cost?a. to reflect production’s “fair share” of costsb. to instill a consideration of support costsc. to reflect usage of services on a fair and equitable basisd. to provide for cost recovery109. A
rational and systematic allocation base for service department costs should
reflect the cost accountant’s consideration of all of the following excepta. the ability of revenue-producing departments to bear the allocated
costs.b. the benefits received by the revenue-producing department from the
service department.c. a causal relationship between factors in the revenue-producing
department and costs incurred in the service department.d. all of the above are considerations.110. Which of
the following is nota method for
allocating service department costs?a. step methodb. indirect methodc. direct methodd. algebraic method111. Which
service department cost allocation method assigns costs directly to revenue-producing
areas with no other intermediate cost pools or allocations?a. step methodb. indirect methodc. algebraic methodd. direct method