Question : (TCO 9] To guide cost allocation decisions, the cause-and-el’fect criterion
may allocate corporate salaries to leIslons based on proﬁts.
is used less frequently than the other criteria.
~’ ' is the primary criterion used in actiwty
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1 Questlon : (TCO 1) ABC systems create
one large cost pool
v ~ homogenous amyltycfelated cost pools
actlvltyscost pools wlth a broadfocus.
amyltwmst pools contalnlng many dlrect costs
Question : (TCO 3] McDevitt Company employs six individuals. Each Is Daid 512.50 Der hour. How 'iould total costs of personnel be classiﬁed?
StLEEI'l ﬂi's'i'i‘Ei: Fixed cost Within relevant range
V ' Variable
Variable cost within relevant range
Question : (TCO 1] Productionrcost crossesubsidization results from
5mm“ 3'35"?” allocating indirect costs to multiple products.
assigning traced costs to each product.
assigning costs to dii‘Ferent products using varied costing systems Within the same or