Which of the following statements is true regarding the salary of the manager that a rapid food hamburger restaurant?A. The salary is a fixed cost that is straight traceable to the price of make hamburgers.B. The value is a variable cost that is directly traceable to the price of operation a specific restaurant.C. The salary is a variable price that cannot be traced to the cost of operation a particular restaurant.D. Nobody of these answers is correct.
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Cost allocation involves:A. Identify a cost driver because that each expense to it is in allocated.B. Calculating one allocation rate for each price to be allocated.C. Multiply the allocation price by the load of the cost driver.D. All of these answers are correct.
Craig Manufacturing firm operates that three production departments within a solitary facility. Each department produce its own products and maintains its own production equipment. Although they share a usual facility, every department is overseen through a different supervisor. Which among the following expenses is a direct cost of every department?A. Lease payment on facilityB. Depreciation top top the facilityC. Production supervisor salaryD. Plant manager salary
Which the the complying with is not a step in allocating indirect prices to price objects?A. Multiply the allocation rate by the weight of the expense driver.B. Map direct expenses to individual cost pools.C. Compute one allocation price by separating the complete cost to it is in allocated by the total cost driver volume.D. Every one of these answers are actions in allocation indirect costs.
For a manufacturer, procedures of volume may include:A. Number of units produced.B. Number of square feet occupied.C. Quantity of straight materials used in production.D. Both variety of units produced and also amount of straight materials used in manufacturing are correct.
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Which the the following ideal describes the term provided to assign indirect costs to a price object?A. Expense tracingB. Expense allocationC. Price assignmentD. Price accumulation
The most valuable cost driver because that allocating a details cost is the one through the the strongest cause-and-effect relationship.TrueFalse
Each indirect price should be allocated to assets individually to carry out the most beneficial cost information.TrueFalse
Southeast Manufacturing agency has determined the following price objects:Cost thing 1: The price of operation the finishing departmentCost thing 2: The cost of a particular product make in JuneCost thing 3: The price of operating the factoryWith respect to these price objects, the price of the value of the at sight of the finishing room is straight traceable to expense objects:A. 1 and also 2.B. 2 and also 3.C. 1 and 3.D. 1, 2, and also 3.