The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the


To evaluate the performance of individual departments, interdepartmental transfers of a product should preferably be made at prices



Download 118.12 Kb.
Page30/38
Date17.12.2020
Size118.12 Kb.
#55418
1   ...   26   27   28   29   30   31   32   33   ...   38
ASSIGNMENT #6 EDITED
To evaluate the performance of individual departments, interdepartmental transfers of a product should preferably be made at prices

a. equal to fully-allocated costs of the producing department.

b. equal to variable costs to the producing department.

c. equal to the market price of the product.

d. set by the receiving department.
Question text

  1. Which service department cost allocation method provides for reciprocal allocation of service costs among the service department as well as to the revenue producing departments?

a. algebraic method

b. step method

c. direct method

d. indirect method
Question text

  1. Which of the following transfer-pricing methods can lead to dysfunctional decision-making behavior by managers?

a. Full cost.

b. External market price.

c. A professionally negotiated, amicable settlement between the buying and selling divisions.

d. Variable cost.
Question text


  1. Download 118.12 Kb.

    Share with your friends:
1   ...   26   27   28   29   30   31   32   33   ...   38




The database is protected by copyright ©ininet.org 2024
send message

    Main page