From a decision-making standpoint, the allocated cost should measure the opportunity cost of using a company resource. True False 1 points Question 2 At the break-even point, total revenue equals total fixed costs. True False 1 points Question 3 Service department costs are allocated to producing departments a. so that the costs can be allocated to the products in the producing departments. b. so that less cost is allocated to service departments. c. so that the service will not be purchased externally. d. All of these answer choices are correct. 1 points Question 4 An allocation base a. is the minimum amount to be allocated to a cost objective. b. is also called a cost pool. c. represents the items to which a cost will be allocated. d. relates the cost pool to the cost objectives. 1 points Question 5 When service department costs are allocated using actual costs and actual usage, the amount allocated to one department will depend on the usage of other departments. True False 1 points Question 6 Which of the following is not a method that is used to estimate variable and fixed costs? a. Account analysis b. High-low method c. CVP analysis d. Regression analysis 1 points Question 7 Which of the following is most likely to be a variable cost? a. Depreciation of a factory building b. Direct labor c. Factory janitor salaries d. Total costs of producing products 1 points Question 8 Step costs a. per unit are the same for each range of volume. b. are classified as step variable or step fixed depending on the range of activity for which the cost remains fixed. c. change in total at every level of activity. d. are considered to be step fixed costs within a relatively small range. 1 points Question 9 Which of the following is not a step in the cost allocation process? a. Calculate the cost involved in each step of the production process. b. Select an allocation base to relate the cost pools to the cost objectives. c. Form cost pools. d. Identify the cost objectives. 1 points Question 10 Costs may not be allocated to a. cost drivers. b. services. c. departments. d. cost objectives.