Variable service department costs should be charged to operating departments at the end of the period according to the formulaMultiple ChoiceBudgeted rate Budgeted activityActual rate Actual activityBudgeted total cost Percentage of peak period capacity required.Budgeted rate - Actual activity.O

Standard costing is the costing method, where standard or expected costs are used in calculating…

Variable service department costs should be charged to operating departments at the end of the period according to the formula Multiple Choice O Budgeted rate Budgeted activity O Actual rate Actual activity O Budgeted total cost Percentage of peak period capacity required. K Budgeted rate Actual activity.

Variable service department costs should be charged to operating departments at the end of the period according to the formula Multiple Choice O Budgeted rate Budgeted activity O Actual rate Actual activity O Budgeted total cost Percentage of peak period capacity required. K Budgeted rate Actual activity.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 17MC: Which budget evaluates the results of operations at the actual level of activity? capĂtal budget...

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Q.dentify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating S, G & A costs that you propose to prepare new budgeted product-line and total company income statements
Which of the following statements is true? Multiple Choice A flexible budget is an estimate of what revenues and costs should have been given the planned level of activity for the period. A flexible budget is a comparison of actual revenues and costs to what they should have been given the planned level of activity. A flexible budget is a comparison of actual revenues and costs at the actual level of activity to the actual revenues and costs incurred at the planned level of activity. A flexible budget is an estimate of what revenues and costs should have been given the actual level of activity for the period.
Under activity-based costing, selling and administrative expenses may be allocated using which of the following formulas for activity rate? a.Activity Rate = Budgeted Activity Cost × Total Activity-Base Usage b.Activity Rate = Budgeted Activity Cost + Total Activity-Base Usage c.Activity Rate = Budgeted Activity Cost – Total Activity-Base Usage d.Activity Rate = Budgeted Activity Cost ÷ Total Activity-Base Usage
Which of the following is a measure of a cost center manager's performance? Oa. return on investment and residual income measures Ob. balance sheet Oc. budget performance report Od. divisional income statements
1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…
Fill in the blanks: A flexible budget summarizes _____ and _____ for various volume levels by adjusting the _____ costs for the various levels of activities. The costs remain the same for all levels of activities.
Activity rates are determined by O a. dividing the cost budgeted for each activity pool by the actual activity base for that pool Ob. dividing the actual cost for each activity pool by the actual activity base for that pool Oc. dividing the cost budgeted for each activity pool by the estimated activity base for that pool Od. dividing the actual cost for each activity pool by the estimated activity base for that pool
The budgeted cost for all activities in a project with the help of earned value method is defined by: Group of answer choices Actual cost Budget for completion Budget at completion Estimate at completion
Using the dual-rate method, compute the amount allocated to each department when (a) the fixedcost rate is calculated using budgeted fixed costs and the practical gift-wrapping capacity, (b) fixed costs are allocated based on budgeted fixed costs and budgeted usage of gift-wrapping services, and (c) variable costs are allocated using the budgeted variable-cost rate and actual usage.
Question: What is the purpose of a flexible budget? a) To control costs and evaluate performance b) To prepare financial statements for external reporting c) To forecast long-term strategic goals d) To allocate overhead costs
What is a standard cost? Group of answer choices The total number of units times the budgeted amount expected Any amount that appears on a budget The total amount that appears on the budget for product costs The amount management thinks should be incurred to produce a good or service
Which of the following statements is not an Objective of the cost management system Select one: a. Identify and evaluate new activities that can improve performance. b. Determine efficiency and effectiveness of major activities. c. Publish the annual financial statements. d. Measure the cost of resources consumed.