4 which of the following does the value chain for a

4. Which of the following does the value chain for a service entity include?
i. Research and Development
ii. Customer support
iii. Purchasing
iv. Production/Delivery
A. i, ii and iii
B. ii, iii and iv
C. i, ii and iv
D. iii and iv
5. Job costing for service entities applies when:

Questions 6 and 7 relate to the following information.
The Vast Company has two Support Department (S1 and S2) that provide services to three
Production Departments (P1, P2 and P3). The cost of S2 is allocated on the basis of space and
the cost of S1 is allocated on the basis of employees. The following information is available.
30,000/(4000+1000+20,000+30,000+50,000)
S1 S2 P1 P2
Budget $45,000 $30,000
Space (sq. mtr.) 4,000 1,000 20,000 30,000 50,000
No. of Employees 5 10 15 45
6. Using the direct method , calculate the amount of S2 cost allocated to P2.
P3
30
S1 S2 P1 P2 P3
Budget $45,000 $30,000
Space (sq. mtr.) 4,000 1,000 20,000 30,000 50,000
No. of Employees 5 10 15 45 30
7. Using the step-down method, calculate the amount of S1 cost allocated to P3, if the cost
of S1 is allocated first.