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Which of the following is the least D. To provide the best possible service to users.
practical reason for allocating
service department costs to user
departments?
A. To ascertain profitability of user
departments.
B. To evaluate performance of
managers and divisions.
C. To make user departments
aware that services are costly.
D. To provide the best possible
service to users.
Service department costs are: C. eventually applied by the user departments to the units produced.
A. generally treated as period
costs rather than product costs.
B. reported as selling and
administrative expenses on the
income statement.
C. eventually applied by the user
departments to the units produced.
D. seldom found in manufacturing
organizations.
A management purpose for A. establish inventory values for unsold units.

allocating joint costs of a
processing center to the various
products produced
is to:
A. establish inventory values for
unsold units.
B. record accurate cost of sales by-
https://quizlet.com/57264207/cost-ch-11-flash-cards/ 1/31
product line.
C. compute total processing cost
variances by-product.
D. report correct standard product
costs for comparative analysis.
Which of the following service D. Cost Accounting.
departments could logically use
space occupied (square footage)
to
allocate its costs to user
departments?
A. Material Handling.
B. Cafeteria.
C. Custodial Services.
D. Cost Accounting.
E. Engineering.
Which of the following A. Assembly.

departments is not a service
department in a typical
manufacturing company?
A. Assembly.
B. Accounting.
C. Human resources.
D. Information processing.
Criteria for selecting allocation D. sales dollars generated during the period.
bases for service department
allocations should not include:
A. direct, traceable benefits from
the service.
B. the extent of facilities provided.
C. the ease of making an
allocation.
D. sales dollars generated during
the period.
Which of the following statements A. Only A is false.

is (are) false regarding the direct
method of allocating service
department costs?
(A) The selection of an allocation
base in the direct method is easier
than the selection of an allocation
base in the step method.
(B) Once an allocation is made
from a service department using
the direct method, no further
allocations
are made back to that department.
A. Only A is false.
B. Only B is false.
C. Neither A nor B is false.
D. Both A and B are false.
Which of the following methods A. Direct method.

provides no data for service
departments to monitor each
other's costs?
A. Direct method.
B. Reciprocal method.
C. Step method.
D. All three methods, Direct,
Reciprocal, and Step, provide data
for monitoring costs.
If two service departments service A. The service department that provides the most service to other service
the same number of departments, departments.
which service department's costs
should be allocated first when
using the step method?
A. The service department that
provides the most service to other
service departments.
B. The service department that
provides the most service to the
user departments.
C. The service department with the
least cost.
D. The service department that
provides the least service to other
service departments.
E. The service department that
provides the least service to the
user departments.
Which of the following is a D. The order of service department allocation has to be determined.
weakness of the step method of
service cost allocations?
A. Computations are more
complex than the reciprocal
method.
B. All interdepartmental services
are ignored.
C. All intradepartmental services
are ignored.
D. The order of service department
allocation has to be determined.
LaCrescent University has 20 B. Option b user, service

departments. Two of its best
departments are the (1) College of
UBW
(Underwater Basket Weaving) and

(2) Testing Services. The College of
UBW attempts to teach students
the difficult, but useful, skill of
weaving baskets underwater.
Testing Services grades
examinations for
professors. How would these two
departments be classified?
A. Option a
B. Option b
C. Option c
D. Option d
Joint products and byproducts are C. the revenue from by-products may be recognized at the time of production.
produced simultaneously by a
single process or series of
processes
and:
A. joint products are salable at the
split-off point, but byproducts are
not.
B. by-products are salable at the
split-off point, but joint products
are not.
C. the revenue from by-products
may be recognized at the time of
production.
D. all by-products must be
allocated some portion of joint
costs.
Which of the following best A. Inventory valuation.

describes the objective of joint
cost allocation?
A. Inventory valuation.
B. Pricing goods for sale.
C. Making decisions about levels of
production.
D. Making decisions about raw
materials requirements.
Allocated joint costs are useful for: E. determining inventory cost for accounting purposes.
A. setting the selling price of a
product.
B. determining whether to continue
producing an item.
C. controlling user department
costs.
D. evaluating management by
means of a responsibility reporting
system.
E. determining inventory cost for
accounting purposes.
Which of the following cost items is E. Freight-out.

not allocable as joint costs when a
single manufacturing process
produces several main products
and several by-products?
A. Direct materials.
B. Variable overhead.
C. Direct labor.
D. Fixed overhead.
E. Freight-out.
For purposes of allocating joint A. final sales price reduced by cost to complete after split-off.
costs to joint products, the
estimated net realizable value at
split-off is
equal to:
A. final sales price reduced by cost
to complete after split-off.
B. sales price less a normal profit
margin at the point of sale.
C. separable product cost plus a
normal profit margin.
D. total sales value less joint costs
at point of split-off.
The method of accounting for joint C. net realizable value method.

product costs that will produce the
same gross margin percentage for
all products is the:
A. replacement method.
B. physical quantities method.
C. net realizable value method.
D. units produced method.
Which of the following statements A The estimated net realizable value for a product is its estimated selling price
is false? after processing the
A The estimated net realizable . product beyond the split-off point.
value for a product is its estimated
selling price after processing the
. product beyond the split-off
point.
B. In general, it is better to use a
product's market value at the split-
off point than its estimated net
realizable value.
CThe estimated net realizable
value at the split-off point is
calculated by taking the sales value
after
. further processing and deducting
the additional processing costs.
D. It is better to use the net
realizable value method for
allocating joint costs than the
estimated net
realizable value method.
Net realizable value at the split-off B. Option b no, yes

point is used to allocate:
A. Option a
B. Option b
C. Option c
D. Option d
Which of the following is not a C. Dollars of labor.

physical measure that can be used
for allocating joint costs using the
physical quantities method?
A. Tons of steel.
B. Ounces of gold.
C. Dollars of labor.
D. Feet of lumber.
Product C is one of several joint A. assumption that the $40,000 is irrelevant.

products that come out of
Department M. The joint costs
incurred in
Department M total $40,000.
Product C can be sold at split-off
or processed further and sold as a
higher
quality item. The decision to
process further should be based
on the:
A. assumption that the $40,000 is
irrelevant.
B. allocation of the $40,000, using
the net realizable value.
C. allocation of the $40,000, using
a physical measures approach.
D. allocation of the $40,000, using
the relative sales value at split-off
method.
The characteristic that is most A. sales value of the products produced during the common production process.
often used to distinguish a product
as either a main product or a by-
product
is the amount of:
A. sales value of the products
produced during the common

production process.
B. direct manufacturing costs (e.g.,
materials) incurred before the split-
off point.
C. physical measures in the
products produced during the
common production process.
D. time (i.e., labor) required to
produce the products from start to
finish.
Products with a relatively minor C. by-products.

sales value are called:
A. scrap.
B. spoilage.
C. by-products.
D. main products.
Bagley Company has two service A. $0.

departments and two producing
departments. Square footage of
space
occupied by each department
follows:
The department costs of Custodial
Services are allocated on a basis of
square footage of space. If
Custodial Services costs are
budgeted at $38,000, the amount
of cost allocated to General
Administration
under the direct method would be:
A. $0.
B. $7,125.
C. $6,000.
D. $5,700.
Castle Company has two service D. $18,021.84.

departments and two producing
departments. The number of
employees
in each department is:
The department costs of the
Personnel Department are
allocated on a basis of the number
of employees. If
these costs are budgeted at
$37,125 during a given period, the
amount of cost allocated to
Department B
under the direct method would be:

A. $0.
B. $17,187.50.
C. $16,875.00.
D. $18,021.84.
Cincinnati Million, Inc. operates A. $136,190.

two user divisions as separate cost
objects. To determine the costs of
each division, the company
allocates common costs to the
divisions. During the past month,
the following
common costs were incurred:
The following information is
available concerning various
activity measures and service
usages by each
of the divisions:
If common computer service costs
are allocated using computer time
as the allocation basis, what is the
computer cost allocated to
Division B?
A. $136,190.
B. $137,647.
C. $144,444.
D. $173,333.
Cincinnati Million, Inc. operates B. $74,643.

the following
usages by each
of the divisions:
Using the most appropriate
allocation basis, what is the
personnel cost allocated to
Division A?
A. $58,143.
B. $74,643.
C. $76,463.
D. $110,000.
Cincinnati Million, Inc. operates A. $457,286.

the following
usages by each
of the divisions:
If all common costs are allocated
using operating profit as the
allocation basis, what is the total
cost
allocated to Division B?
A. $457,286.
B. $512,714.
C. $555,000.
D. $1,087,576.
Castle Company has two service B. $1,718.75.

departments and two user
departments. The number of
employees in
each department is:
The fixed costs of the Personnel
Department are allocated on a
basis of the number of employees.
If these
costs are budgeted at $37,125
during a given period, the amount
of cost allocated to the Cafeteria
under
the step method would be:
A. $0.
B. $1,718.75.
C. $1,687.50.
D. $1,802.18.
The Emery Construction Company A. $420,000.

occupies 85,000 square feet for
construction of mobile homes.
There
are two manufacturing
departments, finishing and
assembly, and four service
departments labeled S1, S2,
S3, and S4. Information relevant to
Emery is as follows:
Rent paid for the area used is
$720,000.
How much rent is allocable to the
assembly department using the
direct method of allocation?
A. $420,000.
B. $332,500.
C. $300,000.
D. $252,000.
The Emery Construction Company B. $40,000.

occupies 85,000 square feet for
construction of mobile homes.
There
are two manufacturing
departments, finishing and
assembly, and four service
departments labeled S1, S2,
S3, and S4. Information relevant to
Emery is as follows:
Rent paid for the area used is
$720,000.
How much rent would be charged
to S4 using the step method of
allocation and a S3-S4-S1-S2
sequence
for the allocations?
A. $36,000.
B. $40,000.
C. $54,000.
D. $90,000.
Computer Complex, Inc. has two B. Option b 3,150, 3,850

main services: (1) time on a
timeshared computer system, and
(2)
proprietary computer programs.
Computer time is provided by the
operation department (Op) and
programs are written by the
programming department (P)
The percentage of each service
used by each department for a
typical period is:
In a typical period, the operation
department (Op) spends $4,500
and the programming department
(P)
spends $2,500.
Under the step method (Op first),
what is the cost of the computer

time and the computer programs
for
sale?
A. Option a
B. Option b
C. Option c
D. Option d
E. Option e
Computer Complex, Inc. has two A. Op = 4,500 + .40 P; P = 2,500 + .30 Op.
main services: (1) time on a
timeshared computer system, and
(2)
proprietary computer programs.
Computer time is provided by the
operation department (Op) and
programs are written by the
programming department (P)
The percentage of each service
used by each department for a
typical period is:
In a typical period, the operation
department (Op) spends $4,500
and the programming department
(P)
spends $2,500.
Under the reciprocal method what
is the algebraic solution to the cost
allocation problem?
A. Op = 4,500 + .40 P; P = 2,500 +
.30 Op.
B. Op = 4,500 + .70 P; P = 2,500 +
.60 Op.
C. Op = 2,500 + .40 P; P = 4,500 +
.30 Op.
D. Op = 2,500 + .70 P; P = 4,500 +
.60 Op.
The RAH Manufacturing Company C. $276,000.

has two service departments:
Maintenance and Accounting.
The Maintenance Department's
costs of $300,000 are allocated on
the basis of machine hours. The
Accounting Department's costs of
$120,000 are allocated on the basis
of the number of employees
within a specific department. The
direct departmental costs for A and
B are $300,000 and $500,000,
respectively.
What is the Maintenance
Department's cost allocated to
Department A using the direct
method?
A. $92,000.
B. $230,000.
C. $276,000.
D. $386,400.
The RAH Manufacturing Company A. $40,000.

B are $300,000 and $500,000,
respectively.
What is the Accounting
Department B using the direct
method?
A. $40,000.
B. $80,000.
C. $20,000.
D. $10,000.
The RAH Manufacturing Company D. $23,810.

B are $300,000 and $500,000,
respectively.
What is the Maintenance
Department B using the step
method and
assuming the Maintenance
Department's costs are allocated
first?
A. $276,000.
B. $230,000.
C. $322,000.
D. $23,810.
The RAH Manufacturing Company B. $81,587.

B are $300,000 and $500,000,
respectively.
What is the cost of the Accounting
Department A using the step
method
and assuming the Maintenance
Department's costs are allocated
first?
A. $81,333.
B. $81,587.
C. $80,000.
D. $68,571.
Harry Dishman owns and operates B. $13,100.

Harry's Septic Service and Legal
Advice. Harry's two revenue
generating (production) operations
are supported by two service
departments: Clerical and
Janitorial.
Costs in the service departments
are allocated in the following order
using the designated allocation
bases:
Clerical:
Variable cost: expected number of
work orders processed
Fixed cost: long-run average
number of work orders processed
Janitorial:
Variable cost: labor hours
Fixed cost: square footage of
space occupied
Average and expected activity

levels for next month (June) are as
follows:
Expected costs in the service
departments for June are as
follows:
Under the step method of
allocation, how much Clerical
service cost should be allocated to
the Septic
Service operation for June?
(Assume Clerical costs are
allocated before Janitorial costs
and round all
calculations to the nearest whole
dollar.)
A. $12,689.
B. $13,100.
C. $13,620.
D. $15,596.
E. $16,070.
Harry Dishman owns and operates C. $8,640.

Harry's Septic Service and Legal
Advice. Harry's two revenue
generating (production) operations
are supported by two service
departments: Clerical and
Janitorial.
Costs in the service departments
are allocated in the following order
using the designated allocation
bases:
Clerical:
Variable cost: expected number of
work orders processed
Fixed cost: long-run average
number of work orders processed
Janitorial:
Variable cost: labor hours
Fixed cost: square footage of
space occupied
Average and expected activity
levels for next month (June) are as
follows:
Expected costs in the service
departments for June are as
follows:
Under the direct method of
allocation, what is the total amount
of service cost allocated to the

Legal
Advice operation for June? (Round
all calculations to the nearest
whole dollar.)
A. $6,231.
B. $7,720.
C. $8,640.
D. $9,330.
E. $9,804.
The following information relates C. $60,619.

to Ray Corporation for the past
accounting period.
Using the simultaneous solution
method, Department A's cost
allocated to Department C is:
A. $48,000.
B. $58,800.
C. $60,619.
D. $98,000.
The following information relates B. $14,021

to Ray Corporation for the past
accounting period.
Using the simultaneous solution
method, Department B's cost
allocated to Department C is
A. $29,021
B. $14,021
C. $13,192
D. $7,794
The following set up is a system of B. P1 = $550,000 + .30S1 + .50S2 + .20S3.

simultaneous linear equations to
allocate costs using the reciprocal
method. Matrix algebra is not
required.
The following costs were incurred
in three operating departments
and three service departments in
Reality Company.
Use of services by other
departments is as follows.
The equation for department P1
(subassemblies) is:
A. P1 = $550,000 + .25P2 + .20P3 +
.15S2 + 10S3.
B. P1 = $550,000 + .30S1 + .50S2 +
.20S3.
C. P1 = .30S1 + .50S2 + 20S3.

D. P1 = .30S1 + .50S.
The following set up is a system of D. P2 = $775,000 + .25S1 + .50S2 + .30S3.

required.
Reality Company.
(final assembly) is:
A. P2 = .25S1 + .50S2 + .30S3.
B. P2 = $775,000 + .25P2 + .20P3 +
.15S2 + .10S3.
C. P2 = $775,000 + .30S1 + .50S2 +
.20S3.
D. P2 = $775,000 + .25S1 + .50S2 +
.30S3.
The following set up is a system of A. P3 = $285,000 + .20S1 + .20S3.

required.
Reality Company.
(marketing) is:
A. P3 = $285,000 + .20S1 + .20S3.
B. P3 = $285,000 + .20S1 + .60S2 +
.20S3.
C. P3 = $285,000 + .20S1 + .20S2 +
.60S3.
D. P3 = $285,000 + .50S1 + .50S3.
The following set up is a system of C. S1 = $85,000 + .10S3.

required.

Reality Company.
The equation for department S1
(building occupancy) is:
A. S1 = .10S3.
B. S1 = $85,000 + 1.00S3.
C. S1 = $85,000 + .10S3.
D. S1 = $85,000 + .90S2 + .10S3.
The following set up is a system of C. S2 = $120,000 + .15S1 + .20S3.

required.
Reality Company.
(research and development) is:
A. S2 = $120,000 + .15S1 + .65S2 +
.20S3.
B. S2 = .15S1 + 20S3.
C. S2 = $120,000 + .15S1 + .20S3.
D. S2 = $120,000 + .40S1 + .60S3.
The following set up is a system of B. S3 = $45,000 + .10S1.

required.
Reality Company.
(supervision) is:
A. S3 = $45,000 + .90S1 + .10S2.
B. S3 = $45,000 + .10S1.
C. S3 = $45,000 + 1.00S1.
D. S3 = .10S1.
Products X, Y, and Z are produced C. $40.00.

from the same process at a cost of
$5,200. Five thousand pounds of
raw material yields 1,500 X, 2,500 Y,

and 1,000 Z. Selling prices are: X $2
per unit, Y $4 per unit, Z
valueless. The ending inventory of
X is 50 units. What is the value of
the ending inventory if joint costs
are allocated using net realizable
value?
A. $21.67.
B. $31.20.
C. $40.00.
D. $42.00.
Lite Co. manufactures products X D. $168,000.

and Y from a joint process that also
yields a by-product, Z. Revenue
from sales of Z is treated as a
reduction of joint costs. Additional
information is as follows:
Joint costs were allocated using
the net realizable value method at
the split-off point. The joint costs
allocated to product X were
A. $75,000.
B. $100,800.
C. $150,000.
D. $168,000.
Great Falls Company makes two C. Option c 4,400, 2,200

products, G and H. They are initially
processed from the same raw
material and then, after split-off,
further processed separately.
Additional information is as follows:
What are the joint costs allocated
to products G and H assuming
Great Falls uses the estimated net
realizable value approach?
A. Option a
B. Option b
C. Option c
D. Option d
Vreeland, Inc., manufactures D. $30,000.

products X, Y, and Z from a
common process. Joint costs were
$60,000.
Assuming that joint production
costs are allocated using the
physical quantities method (units
produced),
what were the costs allocated to
Product X?
A. $27,000.
B. $29,000.
C. $33,000.
D. $30,000.
Vreeland, Inc., manufactures C. $27,000.

products X, Y, and Z from a
common process. Joint costs were
$60,000.
Assuming that joint product costs
are allocated using the net
realizable value method, what
were the total
costs assigned to Product Y?
A. $26,000.
B. $26,796.
C. $27,000.
D. $28,286.
Raymer Corporation produced A. $111,475.

3,660 units, consisting of three
separate products, in a joint
process for the
year. The market for these products
was so unstable that it was not
practical to estimate the selling
price
of the products. A cost of $425,000
was incurred in the joint process.
Product X's production was 80% of
product Y's while product Z's
production was 125% of product
Y's. What is the amount of the joint
cost
allocable to product X assuming
Raymer uses the physical quantities
method of allocation?
A. $111,475.
B. $114,865.
C. $139,344.
D. $141,667.
Zebra Manufacturing Company D. Option d 337,500, 262,500

incurred a joint cost of $600,000 in
the production of R and S in a joint
process. Presently, 1,800 of R and
1,400 of S are being produced
each month. Management plans to

decrease R's production by 300
units in order to increase the
production of S by 500 units.
Additionally,
this change will require minor
modifications, which will add
$20,000 to the joint cost. This cost
is
entirely attributable to product S.
What is the amount of the joint
costs allocable to R and S before
changes to existing production
assuming Zebra allocates their joint
costs according to the proportion
of S
and R produced?
A. Option a
B. Option b
C. Option c
D. Option d
Lankip Company produces two C. $1,500,000.

main products and a by-product
out of a joint process. The ratio of
output
quantities to input quantities of
direct material used in the joint
process remains consistent from
month to
month. Lankip has employed the
physical-volume method to
allocate joint production costs to
the two
main products. The net realizable
value of the by-product is used to
reduce the joint production costs
before the joint costs are allocated
to the main products. Data
regarding Lankip's operations for
the current
month are presented in the chart
below. During the month, Lankip
incurred joint production costs of
$2,520,000. The main products are
not marketable at the split-off
point and, thus, have to be
processed
further.
The amount of joint production
cost that Lankip would allocate to

the Second Main Product by using
the
physical quantities method to
allocate joint production costs
would be:
A. $1,200,000.
B. $1,260,000.
C. $1,500,000.
D. $1,575,000.
The Moody Company produced C. $50,000.

three joint products at a joint cost
of $100,000. Two of these products
were processed further.
Production and sales were:
If the estimated net realizable
value method is used and product
Q is accounted for as a main
product,
how much of the joint costs would
be allocated to product R?
A. $38,889.
B. $41,667.
C. $50,000.
D. $62,500.
The Moody Company produced B. $43,750.

Assume Q is a by-product and
Moody uses the cost reduction
method of accounting for by-
product cost.
If estimated net realizable value is
used, how much of the joint costs
would be allocated to product R?
A. $38,889.
B. $43,750.
C. $50,000.
D. $62,500.
The Moody Company produced C. $60,000.

If joint costs are allocated based
on relative weight of the outputs
and all products are main products,

how
much of the joint costs would be
allocated to product P?
A. $43,750.
B. $50,000.
C. $60,000.
D. $62,500.
The Moody Company produced B. $50,000.

What is the net income of Moody
Company if the estimated net
realizable value method of joint
cost
allocation is used?
A. $20,000.
B. $50,000.
C. $150,000.
D. $350,000.
Anchorage Company manufactures A. $21,000.

three main products, L, M, and N,
from a joint process. Additional
information for June production
activity follows:
Assuming that the 10,000 units of N
were processed further and sold
for $78,000, what was Anchorage's
gross profit from this sale? Assume
the physical quantities method of
allocation is used.
A. $21,000.
B. $28,500.
C. $30,000.
D. $66,000.
The Freed Company produces D. would increase the company's overall net income by $2,000 if processed
three products, X, Y, and Z from a further and then sold.
single raw material input. Product Y
can be sold at the split-off point
for total revenues of $50,000 or it
can be processed further at a total
cost
of $16,000 and then sold for
$68,000. Product Y:
A. should be sold at the split-off
point, rather than processed
further.
B. would increase the company's
overall net income by $18,000 if
processed further and then sold.
C. would increase the company's
D. would increase the company's
There are several methods for E. step-down method.

allocating service department
costs to production departments.
The method
which recognizes service provided
by one service department to
another but does not recognize
reciprocal
interdepartmental service is called:
(CMA adapted)
A. direct method.
B. variable method.
C. linear method.
D. reciprocal method.
E. step-down method.
Because this allocation method D. reciprocal method.

recognizes that service
departments often provide each
other with interdepartmental
service, it is theoretically
considered to be the most
accurate method for allocating
service
department costs to production
departments. This method is: (CMA
adapted)
A. direct method.
B. variable method.
C. linear method.
D. reciprocal method.
E. step-down method.
For the purposes of allocating joint D. relative sales value at split-off.

costs to joint products, the sales
price at the point of sale, reduced
by
the cost to complete after split-off,
is assumed to be equal to the: (CPA
adapted)
A. total costs.
B. joint costs.
C. sales price less a normal profit
margin at point of sale.
D. relative sales value at split-off.
In joint product costing and A. separable costs after the split-off point.
analysis, which one of the following
costs is relevant when deciding the
point
at which a product should be sold
in order to maximize profits? (CMA
adapted)
A. separable costs after the split-
off point.
B. joint costs to the spilt-off point.
C. sales salaries for the period
when the units were produced.
D. purchase costs of the materials
required for the joint products.
E. the company president's salary.
Which of the following is not a C. To trace costs to the activity that created the costs.
reason to justify the allocation of
support services?
A. Tax reporting requirements.
B. Influencing behavior of
employees.
C. To trace costs to the activity that
created the costs.
D. Cost based contracts.
Which of the following is not a D. Additional bookkeeping costs incurred to provide cost allocation information.
benefit of cost allocation?
A. Instilling responsibility for all
costs of the company in division
managers.
B. Constructing performance
measures that may be more
meaningful than contribution
margins.
C. Relating indirect costs to
contracts, jobs and products.
D. Additional bookkeeping costs
incurred to provide cost allocation
information.
Allocation of factory service C. calculate cost per unit for purposes of external financial reporting.
department costs to the
production departments is
necessary to:
A. measure use of plant capacity.
B. make sure that machines are

operating efficiently.
C. calculate cost per unit for
purposes of external financial
reporting.
D. control costs.
Which of the following statements D. All support service costs are generally allocated using a single cost pool.
is false regarding the use of
multiple cost pools?
A. Using more pools generally
results in better cost allocations.
B. Designing and maintaining a
system with multiple pools can be
complex and costly.
C. The use of Activity-Based-
Accounting will almost always
require multiple cost pools.
D. All support service costs are
generally allocated using a single
cost pool.
Which of the following statements A Organizations might implement multiple cost pools when the uses of the
is true regarding the use of service resources have both
multiple cost-pools? . facility-level and unit-level components.
A Organizations might implement
multiple cost pools when the uses
of the service resources have both
. facility-level and unit-level
components.
B. Designing and maintaining
multiple cost pools is a relatively
simple undertaking.
C. The benefits of using multiple
cost pools always outweigh the
costs of setting them up.
D. Both resources supplied and
resources used are allocated with
multiple cost pools.
Which of the following would be C. Number of meals served.

an appropriate cost-allocation
base for allocating the cost of the
company cafeteria?
A. Square footage occupied by
departments.
B. Number of hours of use.
C. Number of meals served.
D. Salaries of personnel purchasing
meals.
Brandeis Corporation has two C. $0.
production Departments: P1 and P2

and two service departments: S1
and
S2. Direct costs for each
department and the proportion of
service costs used by the various
departments
for the month of July are as follows:
Under the direct-method of cost
allocation, the amount of S1 costs
allocated to the S2 would be:
A. $42,000.
B. $20,000.
C. $0.
D. $6,000.
Brandeis Corporation has two A. $20,000.

and
departments
Under the direct-method of cost
allocated to P1 would be:
A. $20,000.
B. $6,000.
C. $30,000.
D. $62,500.
Brandeis Corporation has two C. $0.

and
departments
Under the step-method of cost
allocated to S1 would be:
A. $40,000.
B. $20,000.
C. $0.
D. $42,000.
Brandeis Corporation has two A. $88,750.

and
departments
Under the step-method of cost
allocation, the amount of costs
allocated from S2 to P2 would be:
A. $88,750.
B. $50,000.
C. $62,500.
D. $53,250.
Brandeis Corporation has two B. $160,000.

and
departments
Under the step-method of
allocation, the total amount of
service costs allocated to
producing departments
would be:
A. $118,000.
B. $160,000.
C. $140,000.
D. $40,000.
Which of the following statements DIf all products are sold in the same period as they are produced, the reported
regarding accounting for by- gross margin will be the
products is true? . same regardless of how by-product revenue is accounted for.
A If all products are sold in the
same period as they are produced,
treating by-product revenue as
other
. revenue will result in a higher
overall gross margin.
BIf all products are sold in the
treating by-product net-realizable-
value
. as a deduction of the cost of the
main products will result in a higher
overall gross margin.
C If all products are sold in the

total reported revenues will be the
same
. regardless of how by-product
revenue is accounted for.
DIf all products are sold in the
the reported gross margin will be
the
. same regardless of how by-
product revenue is accounted for.
Which of the following is not a step C. Determining how to allocate joint costs to the final products.
needed to maximize the profits
from joint products?
A. Forecasting the sales price of
each final product.
B. Identifying alternative sets and
quantities of final products
possible from the joint process.
C. Determining how to allocate
joint costs to the final products.
D. Estimating the costs required to
further process joint products into
salable products.
Which of the following statements DOnly costs caused by management decisions to choose one or another set of
about maximizing the profit of joint products after split-off
product processes is true? . are relevant AND only revenues from selling or processing beyond the split-off
A. Joint processing costs incurred point and additional
prior to split-off should be expenditures for further processing are relevant.
allocated before making those
decisions.
B. Only costs caused by
management decisions to choose
one or another set of products
after split-off are
relevant.
C.Only revenues from selling or
processing beyond the split-off
point and additional expenditures
for
further processing are relevant.
DOnly costs caused by
management decisions to choose
one or another set of products
after split-off
. are relevant AND only revenues
from selling or processing beyond
the split-off point and additional
expenditures for further processing

are relevant.
Great Sweets Candy Company B. Both Sweet Meets and Chocolate Delight.
produces various types of candies.
Several candies could be sold at
the
split-off point or processed further
and sold in a different form after
further processing. The candies are
produced in a joint processing
operation with $500,000 of joint
processing costs monthly, which
are
allocated based on pounds
produced. Information concerning
this process for a recent month
appears
below:
Based on the information
presented, which of the products
should be processed further?
A. Sweet Meats only.
B. Both Sweet Meets and
Chocolate Delight.
C. Minty Wonders only.
D. Both Sweet Meats and Minty
Wonders.
Great Sweets Candy Company C. a $25,000 advantage to process further.

the
are
appears
below:
The net advantage (disadvantage)
of processing Sweet Meats further
is:
A. a $25,000 disadvantage to
process further.
B. a $32,143 advantage to process
further.
C. a $25,000 advantage to process
further.
D. a $282,143 disadvantage to
process further.
Great Sweets Candy Company B. should be ignored in determining whether to sell at split-off or process further.
the
are
appears
below:
The joint processing costs in this
operation:
A. should be allocated to products
to determine whether they are sold
at split-off or processed further.
B. should be ignored in
determining whether to sell at
split-off or process further.
C. should be ignored in making all
product decisions.
D. are never included in product
cost, as they are misleading to all
management decisions.
Great Sweets Candy Company A. $734,286.

the
are
appears
below:
If Chocolate Delight is processed
further, the gross profit margin that
will appear in a product line
income
statement for Chocolate Delight
would be:
A. $734,286.
B. $520,000.
C. $1,020,000.
D. $632,596.
Whitney Smith Company makes C. Item C. 8,800, 4,400

two products: X and Y. They are
initially processed from the same
raw
material and then, after split-off,
further processed separately.
What are the joint costs allocated
to products X and Y assuming
Whitney Smith uses the net-
realizablevalue
approach?
A. Item A.
B. Item B.
C. Item C.
D. Item D.
If by-product revenue is treated as D. there is no difference in the overall gross margin of the company.
other revenue instead of deducted
from the net-realizable-value of
the
main products:
A. overall gross margin of the
company will be higher.
B. overall gross margin of the
company will be lower.
C. the answer would depend on
how joint product costs were
allocated.
D. there is no difference in the
overall gross margin of the
company.

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27/1/2018 Fichas de aprendizaje cost ch 11 | Quizlet

cost ch 11 85 términos Colleen_Ward5

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A management purpose for A. establish inventory values for unsold units.

Which of the following A. Assembly.

Which of the following statements A. Only A is false.

Which of the following methods A. Direct method.

LaCrescent University has 20 B. Option b user, service

(Underwater Basket Weaving) and

Which of the following best A. Inventory valuation.

Which of the following cost items is E. Freight-out.

The method of accounting for joint C. net realizable value method.

Net realizable value at the split-off B. Option b no, yes

Which of the following is not a C. Dollars of labor.

Product C is one of several joint A. assumption that the $40,000 is irrelevant.

produced during the common

Products with a relatively minor C. by-products.

Bagley Company has two service A. $0.

Castle Company has two service D. $18,021.84.

under the direct method would be:

Cincinnati Million, Inc. operates A. $136,190.

Cincinnati Million, Inc. operates B. $74,643.

Cincinnati Million, Inc. operates A. $457,286.

Castle Company has two service B. $1,718.75.

The Emery Construction Company A. $420,000.

The Emery Construction Company B. $40,000.

Computer Complex, Inc. has two B. Option b 3,150, 3,850

what is the cost of the computer

The RAH Manufacturing Company C. $276,000.

The RAH Manufacturing Company A. $40,000.

The RAH Manufacturing Company D. $23,810.

The RAH Manufacturing Company B. $81,587.

Harry Dishman owns and operates B. $13,100.

Average and expected activity

Harry Dishman owns and operates C. $8,640.

of service cost allocated to the

The following information relates C. $60,619.

The following information relates B. $14,021

The following set up is a system of B. P1 = $550,000 + .30S1 + .50S2 + .20S3.

C. P1 = .30S1 + .50S2 + 20S3.

The following set up is a system of D. P2 = $775,000 + .25S1 + .50S2 + .30S3.

The following set up is a system of A. P3 = $285,000 + .20S1 + .20S3.

The following set up is a system of C. S1 = $85,000 + .10S3.

and three service departments in

The following set up is a system of C. S2 = $120,000 + .15S1 + .20S3.

The following set up is a system of B. S3 = $45,000 + .10S1.

Products X, Y, and Z are produced C. $40.00.

raw material yields 1,500 X, 2,500 Y,

Lite Co. manufactures products X D. $168,000.

Great Falls Company makes two C. Option c 4,400, 2,200

Vreeland, Inc., manufactures D. $30,000.

Vreeland, Inc., manufactures C. $27,000.

Raymer Corporation produced A. $111,475.

Zebra Manufacturing Company D. Option d 337,500, 262,500

each month. Management plans to

Lankip Company produces two C. $1,500,000.

cost that Lankip would allocate to

The Moody Company produced C. $50,000.

The Moody Company produced B. $43,750.

The Moody Company produced C. $60,000.

and all products are main products,

The Moody Company produced B. $50,000.

Anchorage Company manufactures A. $21,000.