Costing - Study Mode
[#86] Second ranked product in incremental revenue allocation method is termed as
Correct Answer
(B) First incremental product
Explanation
Solution: Second ranked product in incremental revenue allocation method is termed as First incremental product.
[#87] Methods used to allocate costs of reciprocal support departments include
Correct Answer
(D) all of above
Explanation
Solution: Methods used to allocate costs of reciprocal support departments include direct method, step down and reciprocal method.
[#88] Method which allocates cost of support department to only operating departments is called
Correct Answer
(B) direct method
Explanation
Solution: Method which allocates cost of support department to only operating departments is called direct method. The direct allocation method is a technique for charging the cost of service departments to other parts of a business.
[#89] Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as
Correct Answer
(A) revenue allocation
Explanation
Solution: Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue allocation. Revenue allocation can be described as a method of sharing the centrally generated revenue among different tiers of government and how the amount allocated to a particular tier is shared among its components for economic development.
[#90] During a period of rising prices, which of the following inventory pricing methods tends to produce higher cost of goods sold?
Correct Answer
(A) LIFO