1)

An example of central corporate support costs includes _____.

A) tax planning department

B) human resources department

C) maintenance department

D) company cafeteria

2)

The use of actual cost rates for allocating variable costs of service departments protectsthe user departments from inefficiencies in service departments.

A) TRUE

B) FALSE

3)

The preferred cost driver for allocating central corporate support costs to products is either actual or estimated usage.

A) TRUE

B) FALSE

4)

Joint costs from producing multiple products are allocated to main products and to by-products.

A) TRUE

B) FALSE

5)

When using the step-down method of allocating service department costs, service departments provide support activities to ______.

A) producing departments only

B) producing departments and other service departments

C) service departments only

D) producing departments and corporate central offices only