Author Question: When individual activities within a cost pool have a similar relationship with the cost driver, ... (Read 64 times)

shofmannx20 · **on:** Mar 6, 2021

Question 1

To allocate corporate costs to divisions, the ideal situation would be for the allocation base to ________.
◦ be an output unit-level base
◦ have the best cause-and-effect relationship with the costs
◦ combine administrative costs and human resource management costs
◦ allocate the fixed costs only

Question 2

When individual activities within a cost pool have a similar relationship with the cost driver, which of the following could be said about the cost pool?
◦ the costs accumulated in the cost pool are not used for customer-profitability analysis
◦ there is a need for need multiple cost drivers to allocate costs from the pool to customers
◦ the cost pool is considered a homogeneous cost pool
◦ the cost pool is considered contains only direct variable costs

mirabriestensky · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 39% of students answer this correctly