Which of the following statements is true regarding the value of the manager that a fast food hamburger restaurant?A. The salary is a fixed price that is directly traceable to the expense of do hamburgers.B. The salary is a variable expense that is straight traceable to the price of operation a details restaurant.C. The value is a variable expense that cannot be traced to the price of operating a details restaurant.D. Nobody of this answers is correct.
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Cost assignment involves:A. Identify a cost driver for each expense to be allocated.B. Calculating one allocation price for each cost to it is in allocated.C. Multiplying the allocation price by the load of the price driver.D. All of these answers room correct.
Craig Manufacturing firm operates the three production departments in ~ a single facility. Every department produces its own products and maintains its own production equipment. Although they share a typical facility, every department is overseen through a separate supervisor. Which among the following expenses is a direct expense of every department?A. Lease payment ~ above facilityB. Depreciation ~ above the facilityC. Production supervisor salaryD. Plant manager salary
Which that the following is not a step in allocating indirect costs to expense objects?A. Multiply the allocation price by the load of the expense driver.B. Trace direct expenses to individual cost pools.C. Compute an allocation rate by separating the full cost to be allocated by the complete cost driver volume.D. Every one of these answers are actions in allocation indirect costs.
For a manufacturer, steps of volume might include:A. Number of units produced.B. Variety of square feet occupied.C. Quantity of straight materials supplied in production.D. Both variety of units produced and also amount of direct materials supplied in manufacturing are correct.
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Which that the following best describes the term used to assign indirect prices to a price object?A. Cost tracingB. Price allocationC. Price assignmentD. Expense accumulation
The most useful cost driver because that allocating a details cost is the one through the the strongest cause-and-effect relationship.TrueFalse
Each indirect cost should it is in allocated to products individually to carry out the most helpful cost information.TrueFalse
Southeast Manufacturing agency has figured out the following cost objects:Cost object 1: The price of operation the finishing departmentCost object 2: The price of a particular product make in JuneCost thing 3: The expense of operating the factoryWith respect come these cost objects, the expense of the value of the super of the finishing department is straight traceable to price objects:A. 1 and 2.B. 2 and also 3.C. 1 and 3.D. 1, 2, and also 3.