Question
1.) In allocating the cost of a support department, a single charging rate a.is computed by treating the fixed costs as variable costs. b.allocates the
1.) In allocating the cost of a support department, a single charging rate
a.is computed by treating the fixed costs as variable costs.
b.allocates the producing department costs to the support departments.
c.is based solely on the fixed costs.
d.changes with the change in the usage of the support department.
2.) Which of the following statements is true about the producing department of an organization?
a.The Marketing Department of a manufacturing organization is an example of a producing department.
b.A producing department is indirectly connected with an organization's services or products.
c.The Engineering Department of an automobile maker is an example of a producing department.
d.A producing department is directly responsible for creating the products or services sold to customers.
3.)Carefully managing support departments and using _____ can provide companies with behavioral benefits and give them a competitive edge.
a.common costs
b.separable costs
c.cost allocation methods
d.the reciprocal method
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