Questions and answers for exam Preparation

MCQs

Total Questions : 146 | Page 8 of 15 pages

Question 71. In stand-alone revenue-allocation method, the type of weights available for this method are

selling prices as weights
unit costs as weights
physical units as weights
all of above

Discuss Question

Answer: Option D. -> all of above
Answer: (d).all of above

Question 72. The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as

step down allocation method
stand-alone revenue allocation method
incremental revenue allocation method
revenue mix allocation method

Discuss Question

Answer: Option B. -> stand-alone revenue allocation method
Answer: (b).stand-alone revenue allocation method

Question 73. Support department cost allocation method which makes no difference between variable and fixed costs is classified as

sales mix allocation method
dual-rate cost-allocation method
single rate cost allocation method
quantity variance allocation method

Discuss Question

Answer: Option C. -> single rate cost allocation method
Answer: (c).single rate cost allocation method

Question 74. The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as

sales mix allocation method
dual-rate cost-allocation method
single rate cost allocation method
quantity variance allocation method

Discuss Question

Answer: Option B. -> dual-rate cost-allocation method
Answer: (b).dual-rate cost-allocation method

Question 75. A particular term for which specific revenue measurement is required is known as

revenue allocation
revenue object
revenue increment
reciprocal revenue

Discuss Question

Answer: Option B. -> revenue object
Answer: (b).revenue object

Question 76. The department which provides assisting services to internal departments is classified as

supply department
support department
production department
allocation base department

Discuss Question

Answer: Option B. -> support department
Answer: (b).support department

Question 77. According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as

Third incremental party
second incremental party
primary party
First incremental party

Discuss Question

Answer: Option C. -> primary party
Answer: (c).primary party

Question 78. If the employees of division A work for 8000 hours for $90 per hour, then the rate must be paid in division B in accordance of single rate method will be

$90 per hour
less than $90 per hour
greater than $90 per hour
none of above

Discuss Question

Answer: Option A. -> $90 per hour
Answer: (a).$90 per hour

Question 79. The department which directly adds value to product or service is known as

production department
operating department
allocation base department
both a and b

Discuss Question

Answer: Option D. -> both a and b
Answer: (d).both a and b

Question 80. The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as