Costing - Study Mode
[#386] When partially completed units are converted to a comparable number of completed units, they are referred to as
Correct Answer
(B) equivalent units
[#387] Third ranked product in incremental revenue-allocation method is known as
Correct Answer
(D) Third incremental product
Explanation
Solution: Third ranked product in incremental revenue-allocation method is known as Third incremental product.
[#388] In stand-alone revenue-allocation method, type of weights available for this method is
Correct Answer
(D) all of above
Explanation
Solution: In stand-alone revenue-allocation method, type of weights available for this method is selling prices as weight, unit costs as weights and physical units as weights.
[#389] Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as
Correct Answer
(B) stand-alone revenue allocation method
Explanation
Solution: Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as stand-alone revenue allocation method. Revenue Allocation Method uses product-specific information on the products in the bundle as weights for allocating the bundled revenues to the individual products.
[#390] Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as
Correct Answer
(B) dual-rate cost-allocation method
Explanation
Solution: Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as dual-rate cost-allocation method. Allocations are performed in order to create financial statements that are in compliance with the applicable accounting framework.