1. Which of the following methods accounts for 100% of the services that occur between service departments?

Direct method.

Dual-cost allocation method.

Reciprocal method.

Step-down method.

2. Overhead costs have been increasing due to all of the following EXCEPT:

increased automation.

more complexity in distribution processes.

tracing more costs as direct costs with the help of technology.

product proliferation.

3. Which of the following are associated with controlling?

Specifies the resources needed to achieve the company's goals

Communicates a company goals to employees

Evaluating managers to determine how their performance should be awarded and punished.

Assessing operations to provide information as to whether hey should be change or not

4. Activity-based costing systems:

typically use fewer cost drivers than more traditional costing systems.

assign overhead to products based on the products' relative usage of direct labor.

rarely reveal products that were under- or overcosted by traditional costing systems.

None of the above

5. In service cost allocation, the combined costs of allocated service costs and own indirect costs of operating departments become the basis in computing

Overhead rates of operating departments

Total Actual costs of the operating departments

Overhead costs of the service departments

None of the above