Support department cost allocation method which makes no difference between variable and fixed costs is classified as

A sales mix allocation method
B dual-rate cost-allocation method
C single rate cost allocation method
D quantity variance allocation method

Correct Answer: single rate cost allocation method

Support department cost allocation method which makes no difference between variable and fixed costs is classified as single rate cost allocation method. The single-rate cost-allocation method makes no distinction between fixed costs and variable costs in the cost pool.
Bissoy MCQ
#Commerce #Costing

Related Questions

Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?
A Cost of raw material
B Cost of equipment
C Interest payment on past borrowing
D Payment of rent on buildings
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as
A sales mix allocation method
B dual-rate cost-allocation method
C single rate cost allocation method
D quantity variance allocation method
Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as
A complete reciprocal costs
B artificial costs
C operating costs
D flexible operating costs
If ‘F’ is the fixed cost, ‘V’ is the variable cost per unit (or total variable costs) and ‘P’ is the selling price of each unit (or total sales value), then break-even point is equal to
A $$\frac{{{\text{F}} \times {\text{V}}}}{{\text{P}}}$$
B $$\frac{{{\text{F}} \times {\text{P}}}}{{\text{V}}}$$
C $$\frac{{\text{F}}}{{1 + \frac{{\text{V}}}{{\text{P}}}}}$$
D $$\frac{{\text{F}}}{{1 - \frac{{\text{V}}}{{\text{P}}}}}$$
Leto's department can deliver enough parts to fill a storeroom in 8 hours . Jessica's department uses the part to buld another product. Her department can deplete a full storeroom in 1 hours starting with an empty storeroom. how long will it take leto's area to fill the storeroom while jessica's department is working?
A 12
B 16
C 24
D 30
The Mega Tek Corporation is displaying its distribution of employees by department in a circle graph. The size of each sector of the graph respresenting a department is proportional to the percentage of total employees in that department . If the section of the circle graph representing the manufacturing department takes up 72 degree of the circlet , what percentage of Mega Tek employees are in manufacturing?
A 20%
B 27%
C 18%
D 30%
During the four years that Mr. Rahim owned his car,he found that his total car expenses were Tk. 18,000. Fuel and maintenance costs accounted for 1/3 of the total cost and together these two costs accounted for 1/5 of the total cost. If the only other expenses were taxes and License fees, then the cost of financing was how more of less than the cost of taxes and license fees?
A 300 tk less
B 600
C 500
D 8525
In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as
A First incremental user
B primary user
C secondary user
D second incremental user
Rice costs 1/3rd of the cost of fish and fish and fish costs 5/4th of the cost of meat. How many times is the cost of meat as compared to that of rice?
A 5/12
B 4/5
C 5/4
D 5/3
Method, which allocates cost of support department to operating and support departments is known as
A indirect method
B direct method
C step down method
D reciprocal method

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