App12B - Appendix 12B, Service Department Charges Question...

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Unformatted text preview: Appendix 12B, Service Department Charges Question Type Difficulty LO1: Segment income statement LO2: ROI LO3: Residual income LO4: Balanced scorecard LO5: Transfer prices (App. 12A) LO6: Service department charges (App. 12B) Other topics Professional Exam Adapted ID Origin CMA/CPA origin 1 T/F M x New,3/31/98,J E.N. 2 T/F M x 5/e: 16-9 Authors 3 T/F E x New,3/31/98,A E.N. 4 Conceptual M/ C M x New,3/31/98,A E.N. 5 Conceptual M/ C M x 8/e: ATB16-25 David Keyes 6 Conceptual M/ C M x 2/e: 15-5 Authors 7 Conceptual M/ C M x 8/e: ATB16-18 David Keyes 8 M/C M x 2/e: 15-10 Authors 9 M/C M x 3/e: 16-9 Authors 10 M/C M x 1/e:Exam#2-II4 Authors 11 M/C M x 1/e:Exam#2-II3 Authors 12 M/C E x 10/17/2004 Single MC J3 E.N. 13 M/C M x 10/17/2004 Single MC K3 E.N. 14 M/C M x 10/17/2004 Single MC L3 E.N. 15 M/C E x 10/17/2004 Single MC N3 E.N. 12B-1 Appendix 12B, Service Department Charges 16 M/C M x 10/17/2004 Single MC O3 E.N. 17 M/C M x 10/18/2004 Single MC P3 E.N. 18 M/C M x 10/18/2004 Single MC Q3 E.N. 12B- 1 19-20 Multipart M/C M- H x 5/e: 16-48 to 50 Authors 12B- 2 21-22 Multipart M/C M x 9eLD:CH16Q5-7 Larry Deppe 12B- 3 23-24 Multipart M/C M- H x New,3/7/95,C Authors 12B- 4 25-26 Multipart M/C E x 10/17/2004 Multi MC I3 E.N. 12B- 5 27-28 Multipart M/C E x 10/17/2004 Multi MC J3 E.N. 12B- 6 29-30 Multipart M/C E x 10/18/2004 Multi MC K3 E.N. 31 Problem M x 7/e E16-5 clone E.N. 32 Problem M x 7/e E16-3 clone E.N. 33 Problem M x 10/17/2004 Problem I3 E.N. 34 Problem M x 10/17/2004 Problem J3 E.N. 35 Problem E x 10/17/2004 Problem K3 E.N. 12B-2 Appendix 12B, Service Department Charges True / False Questions 1. The fixed costs of service departments should be allocated to operating departments in proportion to the amount of capacity the service departments actually use during the period. True False 2. For performance evaluation purposes, actual service department costs instead of budgeted service department costs should be allocated to operating departments. True False 3. An allocation basis for service department costs should reflect how much cost the operating departments can bear. For this reason, the sales of the operating departments is often a good allocation basis. True False Multiple Choice Questions 4. Variable service department costs should be charged to operating departments at the end of the period according to the formula: A. Budgeted rate x Budgeted activity. B. Budgeted rate x Actual activity. C. Actual rate x Actual activity. D. Budgeted total cost x Percentage of peak-period capacity required. 5. For performance evaluation purposes, the fixed costs of a service department should be charged to operating departments using: A. actual fixed costs and the budgeted level of activity for the period....
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App12B - Appendix 12B, Service Department Charges Question...

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