Which of the following methods recognizes some but not all of the service that occur between service department?

Related Questions

• Q2:

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  • Related Questions
  • Which of the following methods fully recognizes the fact that some service departments provide service to other service departments?
  • Which of the following methods is the most accurate among the three methods for allocating service department costs?
  • When would the direct method and the step
  • When the step

  The Metropolitan Clinic has two service departments (S1 and S2)and two "production" departments (P1 and P2).The service departments service the "production" departments as well as each other,and studies have shown that S2 provides the greater amount of service.Which of the following choices correctly denotes an allocation that would not occur under (1)the direct method and (2)the step-down method of cost allocation?

  
  A)Choice A B)Choice B C)Choice C D)Choice D E)Choice E

• Q3:

  Consider the following statements about service department costs: I.The costs of the Human Resources Department in a manufacturing organization must be allocated to production departments in order to achieve a correct costing of inventory. II.The allocation of service department costs requires that an organization select both an allocation base and an allocation method. III.Service department cost allocations are more relevant for firms involved in service industries (e.g. ,repair,health care)than for those involved with manufacturing. Which of the above statements is (are)correct? A)I only. B)II only. C)I and II. D)II and III. E)I,II,and III.

• Q4:

  When the step-down method is used,the service department whose costs are allocated first is often the department that: A)obtains the highest yield. B)has the lowest cost. C)is the newest. D)serves the greatest number of other service departments. E)serves the fewest other service departments.

• Q5:

  Which of the following methods fully recognizes the fact that some service departments provide service to other service departments? A)Direct method. B)Indirect method. C)Step-down method. D)Reciprocal methoD. E)Dual-cost allocation method.

• Q6:

  The Hearts and Hands Clinic has two service departments (Human Resources and Information Systems)and two "production" departments (In-patient Treatment and Out-patient Treatment).The service departments service the "production" departments as well as each other,and studies have shown that Information Systems provides the greater amount of service.Which of the following allocations would not occur if Hearts uses the step-down method of cost allocation? A)Information Systems cost would be allocated to Human Resources. B)Human Resources cost would be allocated to Information Systems. C)Human Resources cost would be allocated to In-patient Treatment. D)In-patient Treatment cost would be allocated to Out-patient Treatment. E)Allocations "B" and "D" abovE.

• Q8:

  Which of the following methods recognizes the fact that fixed and variable service department costs should be allocated separately? A)Direct method. B)Indirect method. C)Step-down method. D)Reciprocal methoD. E)Dual-cost allocation method.

• Q9:

  Which of the following would be considered a service department for an airline? A)Maintenance. B)Information Systems. C)Purchasing. D)Flight Catering. E)All of thesE.

• Q10:

  Consider the following statements about the direct method of service department cost allocation: I.Under the direct method,all service department costs are eventually allocated to production departments. II.The order in which service department costs are allocated to production departments is important. III.Once a service department's costs have been allocated,no costs are re-circulated back to that department. Which of the above statements is (are)correct? A)I only. B)II only. C)I and II. D)I and III. E)I,II,and III.

• Q11:

  Which of the following methods ignores the fact that some service departments provide service to other service departments? A)Direct method. B)Indirect method. C)Step-down method. D)Reciprocal methoD. E)Dual-cost allocation method.

• Q12:

  A company that uses activity-based costing would likely allocate costs from activity-cost pools to products and services.

Which of the following methods fully recognizes the fact that some service departments provide service to other service departments?

Which of the following methods is the most accurate among the three methods for allocating service department costs?

When would the direct method and the step

When the step