Costing - Study Mode
[#391] A particular term for which specific revenue measurement is required is known as
Correct Answer
(B) revenue object
Explanation
Solution: A particular term for which specific revenue measurement is required is known as revenue object. A revenue object document is used as the basis for revenue recognition and partner settlement.
[#392] Support department cost allocation method which makes no difference between variable and fixed costs is classified as
Correct Answer
(C) single rate cost allocation method
Explanation
Solution: Support department cost allocation method which makes no difference between variable and fixed costs is classified as single rate cost allocation method. The single-rate cost-allocation method makes no distinction between fixed costs and variable costs in the cost pool.
[#393] Department which provides assisting services to internal departments is classified as
Correct Answer
(B) support department
Explanation
Solution: Department which provides assisting services to internal departments is classified as support department.
[#394] If employees of division A work for 8000 hours for $90 per hour, then rate must be paid in division B in accordance of single rate method will be
Correct Answer
(A) $90 per hour
[#395] Department which directly adds value to product or service is known as
Correct Answer
(D) both a and b
Explanation
Solution: Department which directly adds value to product or service is known as production department and operating department.