Costing - Study Mode
[#721] Cash sales, accounts receivables and rental receipts all are known as
Correct Answer
(A) cash receipts
Explanation
Solution: Cash sales, accounts receivables and rental receipts all are known as cash receipts. A cash receipt is a printed statement of the amount of cash received in a cash sale transaction.
[#722] Centers such as revenue, cost, investment and profit all are known as
Correct Answer
(C) responsibility center
Explanation
Solution: Centers such as revenue, cost, investment and profit all are known as responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.
[#723] Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as
Correct Answer
(D) incremental cost allocation method
Explanation
Solution: Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as incremental cost allocation method. Cost allocation methods are designed to allocate costs not necessarily associated with a product, to the appropriate products to get a realistic estimate of costs so that a proper price can be determined for a particular product.
[#724] First ranked product, in incremental revenue allocation method, is classified as
Correct Answer
(A) primary product
Explanation
Solution: First ranked product, in incremental revenue allocation method, is classified as primary product. Primary products are goods that are available from cultivating raw materials without a manufacturing process.
[#725] Products, divisions and customers are examples of
Correct Answer
(D) revenue object
Explanation
Solution: Products, divisions and customers are examples of revenue object. A revenue object document is used as the basis for revenue recognition and partner settlement.