QUESTION 1 Which of the following is the most accurate method of allocating costs? Stepdown method Indirect Method O Reciprocal method O Direct Method QUESTION 2 Which of the following would not be considered a support (non-revenue) producing department? O Information systems Assembly O Maintenance O Housekeeping QUESTION 3 Which of the following can be used for the stepdown? O Neither Actual nor Budgeted costs are recommended to be used for the stepdown. Either Actual or Budgeted costs can be used for the stepdown O Budgeted costs O Actual Costs QUESTION 4 Which of the following inventory methods is required for internal reporting purposes? O Absorption costing O Throughput costing O None of the methods is required for internal reporting O Variable costing QUESTION 5 Which break-even point is the best for decision making? O Variable for internal reporting and fixed for external reporting Absorption break-even point O Variable for external and absorption for internal O Variable break-even point QUESTION 6 Which of the following costs are inventoried under variable costing? Electricity consumed in factory building O Advertising costs on product O Rent on factory building O Sales commissions paid on each sale QUESTION 7 is a method of inventory costing that attaches all costs to a product, no matter if they are factory or office. Full costing Variable costing O Throughput Costing Absorption costing QUESTION 8 Which of the following starts with costs and adds mark-up to get selling price? O Target pricing O Target-minus costing O Target-plus costing O Cost-plus pricing QUESTION 9 Companies must always examine their pricing. O based on the supply of the product. O based on GAAP costing and then add a mark-up O through the eyes of their customers and then manage their costs to make a profit O based on the full cost of producing the product and price to make a profit. QUESTION 10 is the costing method in which all variable manufacturing costs and all fixed manufacturing costs and included as inventoriable costs. O Absorption costing O Variable costing Full costing O Mixed Costing