The power department purchased a generator for providing electricity to three producing departments. Each producing department estimated its power demands at capacity so the Power Dept would have enough generating capacity to meet these potential requirements. Each year, the producing departments also predict their probable power usage for the year. Fixed costs should be allocated to the producing departments on the basis of: Estimated power usage for the year Estimated power usage at capacity Actual power usage for the year An even share to each department In support department cost allocation, the two criteria that are most often used to determine the allocation bases are: A. Benefits received and fairness or quality B. Cause and effect and ability to b C. Fairness or equity and ability to bear D. Cause and effect and fairness or equity E. Cause and effect and benefits received Which of the following statements regarding support department cost allocation is/are true? a. The stop down method will allocate a greater total amount of support costs to the producing departments than the direct method b. The support department costs must be allocated to producing departments before the producing department costs are allocated to the product c. Both A and B d. Neither A nor B Joint costs must be allocated before a. Determining whether a product is a joint product or a by-product b. Determining the value of inventory c. Deciding whether to continue the entire process d. Deciding whether to sell or process father e. All of the above The characteristic most often used to distinguish a by-product from a joint product is a. The quality of the product produced b. The relative sales value of the product c. The incremental processing costs d. None of the above