HCM 416 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
Price Variance
An unfavorable budget varience, due to an unexpectedly high inflation rate seen in a
supply. This would be classified as what category of varience?
True
T/F Budget allocations should be determined or at least influenced by the firms long-
term goals and objectives for the coming year.
Drugs
What is an example of variable cost?
Square Footage
Of the following allocation drivers, which one would be most appropriate for allocating
utility costs to direct departments?
True
T/F The goal of cost allocation is to assign as many of the indirect costs of the
organization as possible to the activities that cause them to be incurred
Cost Pool
The dollar amount of overhead services to be allocated is
Remains the same when volume goes up
Fixed Cost
Nursing unit manager's salary
COMPLETE SOLUTIONS GRADED A++
Price Variance
An unfavorable budget varience, due to an unexpectedly high inflation rate seen in a
supply. This would be classified as what category of varience?
True
T/F Budget allocations should be determined or at least influenced by the firms long-
term goals and objectives for the coming year.
Drugs
What is an example of variable cost?
Square Footage
Of the following allocation drivers, which one would be most appropriate for allocating
utility costs to direct departments?
True
T/F The goal of cost allocation is to assign as many of the indirect costs of the
organization as possible to the activities that cause them to be incurred
Cost Pool
The dollar amount of overhead services to be allocated is
Remains the same when volume goes up
Fixed Cost
Nursing unit manager's salary
