TRUE/FALSE 36) Variable and fixed costs from service departments should be allocated separately to user departments. 37) When allocating service department costs to user departments, fixed costs should be allocated using budgeted cost rates times the actual cost driver level. 38) The use of actual cost rates for allocating variable costs of service departments protects the user departments from inefficiencies in service departments. 39) When allocating fixed costs from service departments to user departments, a predetermined lump- sum allocation based on the long-range capacity available to the user should be used. 40) If a company allocated fixed costs from service departments to user departments based on long-range plans, there is a tendency on the part of managers to underestimate their planned usage. TRUE/FALSE 46) The preferred cost driver for allocating central corporate support costs to products is either actual or estimated usage. 47) Public relations costs and top management salaries are examples of central corporate support costs. 48) The use of cost drivers to allocate central corporate support costs to products such as revenue or total assets represent an "ability to bear" philosophy. TRUE/FALSE 64) Joint costs include all inputs of material, labor and overhead that are incurred after the split-off point. 65) Two conventional ways of allocating joint costs to jointly-produced products are physical units and relative sales value. 66) The relative-sales-value method of allocating joint costs requires a common physical unit for measuring the output of each product. 67) Joint cost allocations should be ignored for decisions such as selling a joint product at the split-off point or processing it further. 68) Joint costs from producing multiple products are allocated to main products and to by-products. 69) By-products normally have significant sales value in comparison with other jointly-produced products emerging at the split-off point. 70) Joint costs are not allocated to a by-product. 71) Revenues from the by-product less separable costs associated with the by-product are added to the cost of the main products