The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the ranking of support departments in the order that the allocation is to proceed c. fully incorporates interdepartmental relationships into the support-department cost allocations d.allocates support-department costs to other support departments and to operating departments in a sequential manner that partially recognizes the mutual services provided among all support departments e.None of the answers.

Distinguish among the three methods of allocating the costs of support departments to operating departments. The ignores any services rendered by one support department to another; it allocates each support department's costs directly to the operating departments. The a sequential manner that partially recognizes the mutual services provided among all support departments. allocates support-department costs to other support departments and to operating departments in The allocates support-department costs to operating departments by fully recognizing the mutual services provided among all support departments.

Indirect expenses a. Cannot be readily traced to one department. b. Are allocated to departments based on the relative benefit each department receives. c. Are the same as uncontrollable expenses. d. a, b, and c above are all true. e. a and b above are true.

Determining the basis used to allocate support department costs follows which guideline? O Profit maximization O Revenue generation O Goal comparison O Cause and effect

true or false Costs that are traceable to a segment and are completely beyond the influence of the segment manager can be advantageously divided in segment reports into two distinct responsibilities - those for segments and those for segment managers.

The support department allocation method that is the most widely used because of its simplicity is the: a. reciprocal allocation method b. sequential allocation method c. step-down method d. direct allocation method

Which of the following statements about responsibility accounting are correct?   Select one: a. Responsibility accounting systems differ widely across organizations. b. The structure for accumulating cost information generally mirrors the structure for accumulating responsibility center information. c. Responsibility accounting is the primary responsibility of accounting staff.

Explain the meaning of the undernoted measures that may be used for divisional performance measurement and investment decision-making.  Discuss the advantages and  problems associated with: Residual income

What are support departments, and why are their costs allocated to other departments? What process is used to allocate support department costs?

TRUE OR FALSE Activity center is a unit in an organization for which management wants the costs of a set of activities be reported separately.