Which of the following is not one of the methods by which support department costs can be applied to products?

a.Single plantwide rate

b.Multiple production department rates

c.Activity-based budgeting rates

d.Activity-based costing

Which of the following is the correct rationale behind allocating support department costs to products?

a.The Institute of Management Accountants (IMA) requires the allocation of support department costs to products.

b.Support department services may be used more heavily by some products than others, and recording them as facility-level costs can result in inaccurate product costs.

c.Support department costs are impossible to trace to the facility, so they must be traced to the department.

d.Support department services are rarely used more heavily by some products than others, and it is best to record them at the facility level for more accurate product costing.

Which of the following is the correct representation of the terms used when describing the transfer of support department costs to products?

a.Transferring support department costs to products is referred to as allocating plantwide costs.

b.Transferring support department costs to products is referred to as allocating overhead costs.

c.Transferring support department costs to products is referred to as allocating costs of goods sold.

d.Transferring support department costs to products is referred to as allocating maintenance costs.