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Costing Practice Questions & Answers

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In incremental cost allocation method, cost object user who is ranked second in ranking order is known as

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In incremental cost allocation method, cost object user who is ranked second in ranking order is known as

A).  First incremental user

B).  primary user

C).  secondary user

D).  second incremental user

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Approaches to allocate costs of support department do not include

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Approaches to allocate costs of support department do not include

A).  sales mix allocation method

B).  dual-rate cost-allocation method

C).  single rate cost allocation method

D).  both b and c

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Method, which allocates cost of support department to operating and support departments is known as

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Method, which allocates 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

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Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called

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Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called

A).  step down product

B).  dual mix product

C).  bundled product

D).  reciprocal product

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Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

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Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

A).  indirect method

B).  direct method

C).  step down method

D).  reciprocal method