Cost Accounting – Chapter 7 – Flashcards
Unlock all answers in this set
Unlock answersquestion
An alternative concept of fairness in cost allocation, absent the cause-and-effect basis
answer
Ability-to-bear
question
Cost allocation provides a service firm a basis for evaluating this
answer
Cost profitability of its serives
question
Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the direct costs directly to the cost object that..
answer
Caused the cost
question
Revenue methods of by-product cost allocation are justified on financial accounting concepts of..
answer
revenue realization and materiality
question
A key distinctive effect of departmental cost allocation can occur when...
answer
the allocation base is actual usage
