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26 what is the complete reciprocated cost of the personnel department a 185 000 b 18 4300508


26) What is the complete reciprocated cost of the Personnel Department?

A) $185,000

B) $187,606

C) $160,000

D) $210,000

27) Which of the following departments is NOT an operating (or value added) department?

A) Machining

B) Accounting

C) Assembly

D) Finishing


28) Which of the following is NOT one of the three methods of allocating support department costs to operating departments?

A) direct method

B) incremental method

C) step-down method

D) reciprocal method


29) The cost-allocation method that allocates support department costs only to production departments is the:

A) direct method

B) sequential method

C) step-down method

D) reciprocal method


30) The direct allocation method allows for no recognition of services rendered by support departments to other support departments.

31) The direct method allocates each support department's costs to operating departments only.


32) The direct allocation method incorporates mutual services provided among all support departments.


33) Budgeted amounts for a support department will always exceed complete reciprocated costs for that department.


34) The direct allocation method provides key information for outsourcing decisions regarding support services.

35) The incremental method of allocating common costs often creates the incentive to be the first-ranked user.




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