All categories

2 years ago

Which of the following statements is(are) false regarding the direct method of allocating service department costs?

1 answer:

8 0

Correct Question: Which of the following statements is (are) false regarding the direct method of allocating service department costs?

(A) The selection of an allocation base in the direct method is easier than the selection of an allocation base in the step method.

(B) Once an allocation is made from a service department using the direct method, no further allocations are made back to that department.

A. Only A is false.

B. Only B is false.

C. Neither A nor B is false.

D. Both A and B are false.

Answer:

A, Only A is false

Explanation:

The selection of an allocation base in the direct method is easier than the selection of an allocation base is false in that allocation base in step method allocates support costs to the support departments and the operating departments that recognise the services provided betwenn thos suport departments.

Cheers.

You might be interested in

Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigne

dolphi86 [110]

Answer:1) Balance in work in Process Inventory for April, May, June

= $11,200, $22,300, $11,`100

2) Balance of finished goods for April, May, June= $1,500, $11,100, $23,000

3)Gross profit for May , June, July $375,$2,775 $5,750

Explanation:

Given

Manufacturing Costs Assigned

Job Number April May June Month Completed

10 $6,200 $4,900 May

11 5,000 4,700 $3,100 June

12 1,500 April

13 5,600 4,600 June

14 7,000 4,100 Not complete

Solution

1) Balance in work in Process Inventory

Job April May June

10 $6,200

11 5,000 5,000+ 4700(9,700)

12 - - -

13 -- 5,600 --

14 --- $7000 $7000 + 4,100 (11,100)

Total $11,200 $22,300 $11,`100

2) Balance of finished goods

Job April May June

10 --- $6,200+ $4,900(11.100)

11 ---- ------ 5,000+4,700 + $3,100(12,800)

12 $1,500 - -

13 -- ---- 5,600+4,600 (10,200)

14 Not complete Not complete

Total $1,500 $11,100 $23,000

3) Gross profit for May , June, July.

May = Finished goods from previous month x mark up percent

$1,500 x 25%=$375

June = Finished goods from previous month x mark up percent

$11,100 x 25%=$2,775

July= Finished goods from previous month x mark up percent

$23,000 x 25%=$5,750

5 0

3 years ago

When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tr

pychu [463]

Answer:

B. Consider an outright acquisition.

3 0

3 years ago

Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p

sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

5 0

2 years ago

Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relation

stepladder [879]

Answer:

b. False

Explanation:

The above is false because sales people are supposed to build and maintain long term relationships with their customers by listening to and assessing their needs and not teaching their customers. Sales people create a concerted effort towards solving those needs experienced by their customers.

A salesperson represent the image of the company he or she is selling for, hence must be professional and well trained because the company gets profit through his interactions with the customers. This means that before the company gets profit, customers must be satisfied because these salespeople act as critical link between the company and its customers.

4 0

3 years ago

An advantage of using the nominal group technique of group decision making is thata) People can participate as they wishb) Peopl

Katen [24]

Answer:

Letter c is correct. <u>It encourages participation from everyone.</u>

Explanation:

People are encouraged to participate in a nominal group technique because it is comprehensive to all participants.

This technique consists of creating group dynamics where each member can express their opinion about what is being proposed by voting, independently and silently, which consequently encourages the breakdown of shyness and reduces the pressure on the participant. This technique has positive effects by balancing the participation of all people and by motivating the group's sense of belonging and effectiveness.

8 0

2 years ago