Cost Acctg QUIZ 9

Cost Acctg QUIZ 9 - Cost Accounting Quiz Quiz 9(CHAPTER 5 1 Production-cost cross-subsidization results from a b c d allocating indirect costs to

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Cost Accounting Quiz Quiz 9 (CHAPTER 5) 1. Production-cost cross-subsidization results from a. allocating indirect costs to multiple products. b. assigning traced costs to each product. c. assigning costs to different products using varied costing systems within the same organization. d. assigning broadly averaged costs across multiple products without recognizing amounts of resources used by which products. 2. In refining a cost system a. total direct costs are unchanged because they can be traced in an economically feasible way to the product and traced costs are more accurate. b. the costs are grouped in homogeneous pools of the same or similar amounts. c. the criterion of cause and effect is used to relate indirect costs to a factor that systematically links to a cost object. d. the organization looks for cost-allocation bases that will provide a uniform spreading of indirect costs to each product. Question 3 is based on the following data. The average cost data are for In-Sync Fixtures Company’s (a retailer) only two product lines, Marblette and Italian Marble. Marblette Italian Marble Purchase volume 20,000 1,000 Purchase cost per unit $50 $50 Shipments received 12 12 Hours used per shipment* 5 3 * These data were accumulated after a careful activity analysis. Currently, In-Sync Fixtures uses a traditional costing system with indirect costs allocated using
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This note was uploaded on 08/25/2011 for the course ACG 3341 taught by Professor Jomosankara during the Spring '09 term at FAU.

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Cost Acctg QUIZ 9 - Cost Accounting Quiz Quiz 9(CHAPTER 5 1 Production-cost cross-subsidization results from a b c d allocating indirect costs to

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