1. A service department is considered: A. A department that provides IT support B. A department that provides out-sourcing C. A department that provides services to other departments D. A department that provides hiring and training services E. None of the above

2. The direct method of allocating service department costs: A. Is not used in todays business environment B. Charges costs to user departments without making allocations between or among service departments C. Allocates costs using a direct allocation base method D. Ignores intermediate cost centers E. Requires an algebraic equation

3. A user department is considered: A. A department that uses resources of a company B. A department that is involved with production C. A department that supports end-users D. A department that uses the functions of service departments E. There are technically no user departments

4. The step method of allocating service department costs: A. Requires a direct relationship with a final cost center B. Skips or steps over one or more departments C. Allocates some service department costs to other service department costs D. Requires the most calculations to allocate cost correctly

E. None of the above

5. Joint costs for allocating to joint products: A. Are based on the net profit of each final product B. Require a direct relationship between the costs and products C. Require all cost centers and profit centers to incur allocations D. Are costs incurred prior to the split-of point E. All of the above

1. A service department is considered: A. A department that provides IT support B. A department that provides out-sourcing C. A department that provides services to other departments D. A department that provides hiring and training services E. None of the above

2. The direct method of allocating service department costs: A. Is not used in todays business environment B. Charges costs to user departments without making allocations between or among service departments C. Allocates costs using a direct allocation base method D. Ignores intermediate cost centers E. Requires an algebraic equation

3. A user department is considered: A. A department that uses resources of a company B. A department that is involved with production C. A department that supports end-users D. A department that uses the functions of service departments E. There are technically no user departments

4. The step method of allocating service department costs: A. Requires a direct relationship with a final cost center B. Skips or steps over one or more departments C. Allocates some service department costs to other service department costs D. Requires the most calculations to allocate cost correctly

E. None of the above

5. Joint costs for allocating to joint products: A. Are based on the net profit of each final product B. Require a direct relationship between the costs and products C. Require all cost centers and profit centers to incur allocations D. Are costs incurred prior to the split-of point E. All of the above