S1 - After service department costs are allocated to other departments, costs are re-circulated back to that service department, under the step method. S2 - When using the direct method of allocating service department costs, it is necessary that the cost of the service department which serves the greatest number of departments is allocated first.   a. Only S1 is true b. Only S2 is true c. Both S1 & S2 are true d. Both S1 & S2 are false

Q: What are the three methods of departmental cost allocation? Explain how they differ, which is…

A: Departmental cost allocation Departmental cost allocation refers to the allocation of overhead…

Q: Which one of the following statements is incorrect? A. The reciprocal method is rarely used in…

A: The following statement is Incorrect:: In the step method, any amount of the allocation base that is…

Q: Regardless of the system used In departmental cost analysis: Multiple Cholce Total departmental…

A: Direct cost like materials and labor are not allocated but indirect cost like overhead cost is…

Q: What is conceptually the most defensible method for allocating support-department costs? Why?

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Explain Traffic Acquisition Costs (TAC), Other cost of revenues and R&D expenses. Are they fixed or…

A: Cost of revenue refers to the cost which are incurred in generating revenue of a firm. It may…

Q: Cost assignment and cost accumulation are the two cost accounting system processes that helps…

A: Costing is the method of recording, all cost incurred in process of completing product project and…

Q: Is it true that with the use of the algebraic method, each department’s costs are set out in an…

A: Direct costs are costs that can be credited to a specific department. The company knows what…

Q: Q1) Below are the examples of cost objects, except: a. product b. services c. department d.…

A: Cost object means something that the company should measure separately as a object which is…

Q: Which method of allocating support department cost is more accurate method

A: Accurate method of allocating support department cost is "Reciprocal method" because under this…

Q: If two support departments service the same number of departments, which support department's costs…

A: Departmental overhead rate is calculated by adding the allocated service costs to the overhead costs…

Q: Suggest a reasonable basis for allocating thefollowing indirect expenses to departments: advertising

A: An indirect cost is the cost which is indirectly involved in the process of production.

Q: Calculate the amount of the restructuring provision if any.

A: The purpose of a restructuring provision is to ensure that a company's financial statements…

Q: Matching Question: Match the following cost accounting objectives with their corresponding…

A: The question is related to Matching the correct cost accounting objectives.

Q: 1. Indirect costs can be allocated to a cost centre if they: A. Can be identified wholly with the…

A: Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which is not a common method used to allocate costs under the departmental approach?   Multiple…

A: The common method used to allocate costs under the departmental approach are as follow: Step…

Q: Which of the following describe the reciprocal method for cost allocation: Select one: O a.…

A: Cost allocation is very important in case there are two types of departments are there. One is…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: Support departments are those departments which helps or provides support to other operation…

Q: Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint…

A: Overheads means all type of indirect costs being incurred in business. These costs can not be…

Q: Common overheads which cannot be allocated directly to the specific departments need to be…

A: Overhead expenses are those expenses which are incurred by the company to run the day to day…

Q: Help question 33

A: Answer: Option C is the correct answer.

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

Q: A cost objective is the: O reason for allocating the cost O product, service, or department that is…

A: Cost object is the allocation related to the product, service. It allocate the cost according to the…

Q: Which of the following is/ are considered as the uses of standard costing?   Statement 1:…

A: Introduction:- Standard Costing:- The practice of estimating the cost of a production process is…

Q: Compare and explain differences in the support-department costs allocated to each production…

A: Cost allocation is the process in cost accounting that deals with identifying the cost centers or…

Q: What is the total costs transferred from Department 2 to Department 3?

A:

Q: A is not an example of a cost objective. a. department b. product c. territory d. All of these…

A: The question asked to find correct the option from the given options.   Cost object: The cost object…

Q: The transfer price between two internal divisions will represent O an expense, cost revenue, cost…

A: Revenue for the Selling Division -The transfer price serves as the revenue or sales amount for the…

Q: TWO (2) basis of the apportionment of overheads.

A: Generally, benefit derived by a particular department is the basis for apportionment of cost.…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: not easily traceable and are allocated to a cost object u not abbreviate or add any extra spacing in…

A: Direct costs refer to those expenses which can be directly related to a product or a service.

Q: There are four steps in the two-stage cost allocation process using ABC. Which of the following not…

A: Activity-Based costing system: Activity-based costing is a costing method that identifies activities…

Q: The cost that can be directly identified with a cost unit/centre and can be allocated to that cost…

A: Cost of production = Direct manufacturing costs + Indirect manufacturing costs   Indirect costs =…

Q: Q.1 Compare your cost allocations from the direct and reciprocal methods. omment on how similar or…

A: There are different methods for allocation of service department costs over the production…

Q: 18. Which of the following cost allocation methods does not take into consideration that service…

A: The direct method is the simplest of the four. The direct method allocates the costs of each of the…

Q: 4. Describe and list examples of the three category of expenses? Product costs Period costs…

A: Expenses are an essential part of running any business, as they represent the costs that must be…

Q: Distinguish among the three methods of allocating the costs of support departments to operating…

A: The three methods of allocating the costs of support departments to operating departments are the…

Q: Cost allocation is a general term that refers to identifying accumulated costs with, or tracing…

A: Answer:- Cost allocation:- Identification, agglomeration, and assignment of costs to cost objects…

Q: Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments…

A:

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.