1)

The cost to serve percentage for a customer equals _____.

A) gross margin per unit divided by selling price per unit

B) contribution margin per unit divided by selling price per unit

C) cost of goods sold per unit divided by selling price per unit

D) cost associated with customer divided by sales revenue

2)

The three methods for allocating service department costs to other departments are ______.

A) step-down, indirect and reciprocal allocation.

B) direct, step-up and reciprocal allocation.

C) step-down, direct and reciprocal allocation.

D) step-up, indirect and simultaneous equations.

3)

Service departments in organizations exist to support ______.

A) other service departments and customers only

B) producing departments and suppliers only

C) other serivice departments, producing departments and customers

D) producing departments and customers only

4)

For costs that accountants cannot directly trace to products or services,accountants use _____ or ______.

A) ABC methods; payback method

B) cost-budgeting methods; ignore remaining costs

C) snesitivity analysis; financial planning models

D) cost-allocation methods; leave costs unallocated