HSMA 4055 Quiz 3 || 100% Accurate Solutions.
Which of the following statements about managerial accounting is incorrect? correct answers
Managerial accounting information is prepared in accordance with rules established by outsiders
(generally accepted accounting principles)
Which of the below statements about cost allocation is most correct? correct answers The
reciprocal method is conceptually the best but typically he most expensive to implement
Which of the following statements about cost allocation is most correct? correct answers none of
the above statements are correct
Effective cost drivers should have which of the following characteristics? correct answers they
should be perceived as being fair
they should create an incentive for cost reduction
(both a and b)
Which of the following statements about activity-based costing (ABC) is most correct? correct
answers it is most useful for assigning costs to individual services
Which of the following statements about relevant range is most correct? correct answers it is the
range of output (volume) for which the organization's cost structure holds
true or false: in general, the best way to allocate costs in a large organization is to assign all
overhead expenses to a single cost pool with one cost driver correct answers false
true or false: the relationship between costs and the volume of services provided is called
underlying cost structure correct answers true
True or false: the goal (purpose) of cost allocation is to assign all overhead costs to the activities
(departments) that cause the costs to be incurred correct answers true
true or false: in economics, the situation in which average cost (per unit of output) declines as
volume increases is known as economies of scope correct answers false
Which of the following pricing strategies is most likely to lead to long term financial
sustainability? correct answers full cost
Which of the following pricing strategies is most likely to ensure profitability on a contract
undertake by a price-taker provider? correct answers target costing
Which of the following statements best describes the contribution margin? correct answers the
contribution margin is the dollar amount of each unit of output that is available first to cover
fixed costs and then to contribute to profit
Which of the following statements about managerial accounting is incorrect? correct answers
Managerial accounting information is prepared in accordance with rules established by outsiders
(generally accepted accounting principles)
Which of the below statements about cost allocation is most correct? correct answers The
reciprocal method is conceptually the best but typically he most expensive to implement
Which of the following statements about cost allocation is most correct? correct answers none of
the above statements are correct
Effective cost drivers should have which of the following characteristics? correct answers they
should be perceived as being fair
they should create an incentive for cost reduction
(both a and b)
Which of the following statements about activity-based costing (ABC) is most correct? correct
answers it is most useful for assigning costs to individual services
Which of the following statements about relevant range is most correct? correct answers it is the
range of output (volume) for which the organization's cost structure holds
true or false: in general, the best way to allocate costs in a large organization is to assign all
overhead expenses to a single cost pool with one cost driver correct answers false
true or false: the relationship between costs and the volume of services provided is called
underlying cost structure correct answers true
True or false: the goal (purpose) of cost allocation is to assign all overhead costs to the activities
(departments) that cause the costs to be incurred correct answers true
true or false: in economics, the situation in which average cost (per unit of output) declines as
volume increases is known as economies of scope correct answers false
Which of the following pricing strategies is most likely to lead to long term financial
sustainability? correct answers full cost
Which of the following pricing strategies is most likely to ensure profitability on a contract
undertake by a price-taker provider? correct answers target costing
Which of the following statements best describes the contribution margin? correct answers the
contribution margin is the dollar amount of each unit of output that is available first to cover
fixed costs and then to contribute to profit
