1. Allocate service departments cost to production departments by using direct method and step-down method.

Indicate whether the following statement is true or false, then support your view. By using a single cost pool and a single cost driver to allocate overhead, the more traditional methods of overhead assignment fully considers the influence on cost of the different activities that occur to make a product.

Which one of the following methods of cost allocation is completed by taking the service flows to production departments only and determining each production department's share of that service? Multiple Choice Reciprocal method. O Direct method. Step method. O Cross-functional method. Indirect method.

Support department costs are applied to products as a part of a.fixed manufacturing costs b.fixed selling and administrative expenses c.variable cost of goods sold d.overhead

In a process costing system, costs incurred in one department remain there rather than being transferred on to the next department. True or False

which cost allocation method to use to serve better support direct cost to producing departments?

Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages?       Multiple Choice   Direct costs are allocated to the production departments based on a predetermined overhead rate.   The costs are assigned to departments, and then to the products based upon their use of activity resources.   The costs are assigned to activities, and then to the products based upon their use of the activities.   Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.