8 Under the incremental method of allocating common costs Select one: a. each party bears a proportionate share of the total costs in relation to their individual stand-alone costs. b. the parties are interested in being viewed as primary users. c. there is a disincentive to be titled the primary user. d. fairness and equity are emphasized..

8 Under the incremental method of allocating common costs Select one: a. each party bears a proportionate share of the total costs in relation to their individual stand-alone costs. b. the parties are interested in being viewed as primary users. c. there is a disincentive to be titled the primary user. d. fairness and equity are emphasized..

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.3E

See similar textbooks

Similar questions

Those costs which cannot be influenced by the action of a specified member of an enterprise is cafted? Select one: a. Non-controllable costs b. Relevant Costs C. All Costs d. Pre-determined costs
(Management Accounting) When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________. A) the proportion of indirect costs to direct costs B) the extent a particular cost is caused by a cost object C) multiple cost drivers D) the proportion of direct costs to indirect costs
Q.1 Compare your cost allocations from the direct and reciprocal methods. omment on how similar or different they are, and make a recommendation to FMU leadership as to which it should use for allocating these costs. Q.2 Should FMU consider using the reciprocal method for allocating some of the support service costs while using the direct method for others? Explain. If it did, which support services would you recommend for the reciprocal method? Explain why.
Costs which are assignable beyond the splitoff point at which individual products emerge are called Select one: a. byproduct cost b. main cost c. joint cost d. separable cost
Which of statements about the contribution income statement is correct? Group of answer choices Costs are classified as being either product or period. Costs are classified as being either fixed or variable. It is required by GAAP. It is intended for external users.
Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the direct costs directly to the cost object that: Multiple Choice Relates best to the cost. Is first identified with the cost. Is most impacted by the cost. Can bear the cost. Caused the cost.
13. Costs incurred before the split-off point are Group of answer choices opportunity costs. sunk costs. incremental costs. relevant costs.
Classify the following fixed costs as normally being either committed or discretionary:b. Advertising
A cost objective is the: O reason for allocating the cost O product, service, or department that is to receive the allocation O basis on which costs are allocated O relative benefit received from using a resource
. Name the units of service on which cost-based payers may pay providers
The distinction between indirect and direct costs depends on: Select one: a. whether a cost differs between alternatives. b. whether a cost is variable or fixed. c. whether a cost is a product or a period cost. d. whether a cost can be easily traced to the cost object under consideration. e. all of the above statements are correct.
Costs that are directly associated with the earning of revenue are recognized as in the same period where the related revenue is recognized. * expense Systematic and rational allocation Immediate recognition O Matching O Cost-benefit