Question 26 (3 points)

Your Company has 2 support departments "C" & "D", and 2 operating departments "S"&"R". Data for the month of June is as follows:

Total Costs: "C" $3,900 "D" $4,000 "S" $6,000

"R" $4,000

Total "C" dept. hours: 50 broken down as follows: 6 by "D", 20 by "S" & 24 by "R" Total "D" dept. hours: 100 broken down as follows: 30 by "C", 45 by "S" & 25 by

"R"

Under the "Step Down" method, how much of Dept "D"'s costs will be allocated to Dept "C" initially?

$1,200

$2,000

$483

$400

Question 29 (1 point)

The purpose of allocating revenues from "bundled products/services to the individual products/services is

to assess individual products/services profitability

to assess individual product manager's performance

to make capital investment decisions

all of the listed answers are potentially correct

Question 34 (1 point)

Last month your company had an unfavourable "sales-volume cm variance". This could be explained by a slightly favourable "sales-mix cm variance" offset by a significantly unfavourable "market-size cm variance"

True

False

Question 32 (1 point)

Generally the higher the level of management, the greater the emphasis on long term performance measures used to formulate the compensation package.

True

False

Question 33 (1 point)

Tax authorities prefer the following method in setting Transfer Prices due to its

simplicity/verifiability.

Negotiated

Market-based

Institutional

Cost-based