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NEW QUESTION: 1
Lap and shoulder belt combinations in your car:
A. Are most effective in busy traffic
B. Are usually safer than lap belts only
C. Are not effective at slow speeds
Answer: B
NEW QUESTION: 2
Cost allocation is the process of assigning indirect costs to a cost object. The indirect costs are grouped in cost pools and then allocated by a common allocation base to the cost
object. The base that is employed to allocate a homogeneous cost pool should.
A. Have a cause-and-effect relationship with the cost items in the cost pool.
B. Assign the casts in the pool uniformly to cost objects even if the cost objects use resources in a non uniform way.
C. Be a nonfinancial measure e.g., number of setups) because a nonfinancial measure is more objective.
D. Have a high correlation with the cost items in the cost pool as the sole criterion for selection.
Answer: A
Explanation:
A cost allocation base is the common denominator for systematically correlating indirect costs and a cost object. The cost driver of the indirect costs is ordinarily the allocation base. In a homogeneous cost pool, all cost should have the same or a similar cause-andeffect relationship with the cost allocation base.
NEW QUESTION: 3
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Answer:
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