chapter quiz_9revised

chapter quiz_9revised - Chapter Quiz_9 Cost Accounting Your...

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Chapter Quiz_9 Your Name Cost Accounting Circle the best choice. 3 points each 1. Which of the following statements is (are) true regarding the potential effects of using reported product costs for decision making? (A) Traditional product costing systems (e.g., job and process costing) are designed primarily to accumulate cost information for financial reporting. (B) If a single cost driver is used as the allocation base, applied manufacturing overhead for product costing purposes may lead to inappropriate managerial decisions. A. Only A is true B. Only B is true. C. Both A and B are true. D. Neither A nor B is true. 2. Which of the following statements is (are) false regarding first-stage and second-stage cost allocation methods? (A) The basic difference between a first-stage cost allocation and a second-stage cost allocation is that cost pools are not used in first-stage cost allocations. (B) Predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations. A. Only A is false. B. Only B is false. C. Neither A and B nor false. D. Both A and B are false. 3. Activity-based costing (ABC) is a costing technique that uses a two stage allocation process. Which of the following statements best describes these two stages? A. The costs are assigned to activities, and then to the products based upon their use of the activities. B. The costs are assigned to departments, and then to the products based upon their use of activity resources. C. Service department costs are allocated to the production departments, and then to the products based upon their use of the activities. D. Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities. 4.. Which of the following statements is true?
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This note was uploaded on 03/05/2012 for the course ACCOUNTING 101 taught by Professor Murtzua during the Spring '12 term at Seton Hall.

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chapter quiz_9revised - Chapter Quiz_9 Cost Accounting Your...

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