1-Answer the following questions using the information below:

Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If advertising expense of $483,000 is allocated on the basis of sales, the cost per cost driver rate would be ________.

A. $0.23 per dollar of sales

B. $0.22 per dollar of sales

C. $0.25 per dollar of sales

D. $0.24 per dollar of sales

2-Which of the following statements is true of costing systems?

• ABC systems classify some indirect costs as direct costs helping to improve processes
• Singleminus−indirect cost pool systems always result in overcosting of products.
• ABC systems always result in overcosting of products.
• Singleminus−indirect

3-cost pool systems classify some direct costs as indirect costs.

4-Productminus−cost crossminus−subsidization

________.

• means that if a company undercosts one of its products, it will overcost at least one of its other products

                                                

• exists only when one overcosted product results in all other products being overcosted
• exists when one overcosted product results in more than one other product being overcosted
• means that if a company undercosts more than one of its products, it will overcost more than one of its other products

4-Which of the following statements is true of a

peanutminus−butter

costing system?

• A peanutminus−butter costing system typically has moreminus−homogeneous indirect cost pools.
• In a peanutminus−butter costing system, costs of activities are used to assign costs to other cost objects such as products or services based on the activities the products or services consume.
• A peanutminus−butter costing system broadly averages or spreads the cost of resources uniformly to cost objects.
• A  peanutminus−butter  costing system assumes that all costs are variable.

5-Which of the following statements is true of activity minus−based costing?

• In activity minus−based costing, direct laborminus−hours is always the best allocation base to allocate all nonminus−manufacturing indirect costs.
• The main advantage of activityminus−based costing over peanutminus−butter costing is the accurate distribution of all direct costs to the products.
• Activity based costing is more suited to companies with high product diversity than companies with single product line.
• Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.

SuperTutor

(15)

Status NEW Posted 10 Jun 2017 02:06 AM My Price 10.00

-----------

Attachments

file 1497062730-Solutions file.docx preview (51 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer