≡ MENU

MCQs Papers Definitions Flashcards

MCQs
Papers
Definitions
Flashcards

Categories

Home—›
Cost Allocation Techniques

?

The management of ROX Company wishes to encourage all other departments to use the
legal department, as circumstances warrant. To accomplish this, legal department costs
should be

Allocated to users on the basis of the actual cost of hours used.Allocated to users on the basis of the budgeted cost of actual hours used.Allocated to users on the basis of standard cost for the type of service
provided.Absorbed as a corporate expense.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (D) is correct.
The most effective way to encourage more use of a service is to keep the
user from having to bear the cost of the service.

Related MCQs

?Wilcox Industrial has two support departments, the Information Systems Department and the Personnel Department, and two manufacturing departments, th...
?A corporation allocates indirect corporate overhead costs to its operating divisions. The company uses a cause-and-effect criterion in the selection ...
?Cotton Company has two service departments and three operating departments. In allocating service department costs to the operating departments, whic...
?Boston Furniture Company manufactures several steel products. It has three production departments: Fabricating, Assembly, and Finishing. The service ...
?The management of ROX Company wishes to encourage all other departments to use the legal department, as circumstances warrant. To accomplish this, le...
?When allocating costs from one department to another, a dual-rate cost-allocation method may be used. The dual-rate cost-allocation method is most us...
?Allocation of service department costs to the production departments is necessary to
?When allocating service and administrative costs, the least useful criterion as a basis for allocation is
?Wilcox Industrial has two support departments, the Information Systems Department and the Personnel Department, and two manufacturing departments, th...
?Render, Inc., has four support departments (maintenance, power, human resources, and legal) and three operating departments. The support departments ...

Home

Privacy Policy DMCA Policy Contact Us

Copyright © 2015 accountingMCQs.com | All Rights Reserved