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TRUE/FALSE. Write 'T' if the statement is true and 'F if the statement is laist 1) The step-down method of service department cost allocation ignores
TRUE/FALSE. Write 'T' if the statement is true and 'F if the statement is laist 1) The step-down method of service department cost allocation ignores interdepartmental services partment and allocates all service provided from one service department to another service de department costs directly to operating departments. 2) The Profitability Index is computed as Net Increase in Net Income/ Dollars Invested. S) The step-down method ultimately results in less total cost being allocated to operating departments than the direct method. 4) A cost that can be avoided by choosing one alternative over another is relevant 5) When a company has a production constraint, total contribution margin will be maximized by constrained resource. emphasizing the products with the highest contribution margin per unit of the joint products. which the joint products can be recognized as separate products. sell or process further decision. 6) The term joint cost is used to describe the costs incurred up to the split-off point in a process involving 7) The split-off point in a process that produces joint products is the point in the manufacturing process at 8) An avoidable fixed production cost incurred before the split-off point in a joint process is relevant in a 9) In the payback method, depreciation is added back to net operating income when computing the annual 10) The net prese net cash flow nt value method can be used as a screening tool in capital budgeting decisions, but the internal rate of return should not be used for screening
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