Cost Accumulation and Allocation Techniques

What is the primary reason managers need reliable cost estimates?

Which of the following is not considered a secondary cost object in the promotion example?

Which factor best describes a cost driver?

What should management consider before deciding to run the promotion?

Which of the following is an example of a variable overhead cost?

In the context of cost allocation, what is meant by 'salary allocation methods'?

What impact can departmental bonuses have on cost management?

How does the number of advertisements act as a cost driver?

What is the purpose of calculating the allocation rate in cost allocation?

How is the allocation rate per direct labor hour calculated?

When using direct labor hours as the cost driver, how much is allocated for desks?

Which statement best explains the relationship between direct materials and indirect materials in cost allocation?

What is a common misconception about using labor hours as the cost driver?

What allocation method might Filmier employ if labor hours are deemed inappropriate?

In the given calculations, what was the total allocation for chairs when using direct labor hours?

Which option best describes the impact of cost drivers in production?

What is the purpose of accumulating individual costs into a single cost pool?

Which cost driver would be most appropriate for the allocation of the utilities cost?

How much is allocated to the Women's department based on the rent allocation rate?

Why might ISI use the driver linked to the total amount of sales for shopping bags?

What is the utility allocation rate calculated per square foot?

Which of the following statements about cost drivers is correct?

What is the total rent allocated for the Children's department based on the allocation?

In which scenario would the allocation of bonuses to departments potentially impact overall costs?

The total costs to be allocated for rent were $______.

The allocation rate for rent was calculated to be $______ per square foot.

For the Men's department, the cost allocated was $______.

The total utility costs to be allocated were $______.

The allocation rate for utilities was calculated at $______ per square foot.

For the Children's department, the total allocated amount for utilities was $______.

In cost allocation, many individual costs are accumulated into a single cost ______.

Selecting the right cost ______ is crucial for effective cost allocation.

The children's department uses more shopping bags than the ______ department.

To allocate supply cost to the departments, ISI must maintain a record of the number of ______ transactions per department.

The allocation rate for supplies is calculated as total costs to be allocated divided by total costs ______.

The allocation for the Women's department based on sales of $190,000 at an allocation rate of $0.0025 is ______.

For advertising, the allocation rate is calculated as advertising costs divided by total costs ______.

There is no strong cause-and-effect relationship between the store manager’s salary and the ______.

The total allocation for advertisements across all departments amounts to ______.

Total Costs to be allocated is $60,000 Indirect Materials divided by the total ___ Driver.

The Allocation Rate for indirect materials is calculated to be $12 per ___.

The allocation rate for supplies calculated was ______ per sales dollar.

$60,000 Indirect Materials divided by 6,000 Hours results in an Allocation Rate of $10 per direct labor ___.

The total allocation for desks when using direct labor hours is $___,000.

If direct materials usage is considered, the usage is measured in material ___.

When using labor hours as the cost driver, Filmier allocates $10 per direct labor hour to ___.

The total costs allocated for chairs is calculated by multiplying $10 per direct labor hour by the ___ units allocated.

The total cost allocated across desks and chairs is ___ to match the total indirect materials cost.

The total costs to be allocated for Rent is ______.

The allocation rate for Rent per bottle is ______ per Bottle.

The term used for the overhead allocation rate determined before actual cost and volume data are available is ______.

Grave Manufacturing estimates its supervisor’s salary to be ______ per year.

The allocation rate per unit for the supervisor’s salary is calculated as ______ per Unit.

In January, the allocation for production based on the allocation rate is ______.

Cost allocations can significantly influence managers’ performance evaluations and ______.

Control over resources usually offers managers ______ and influence over organizational operations.

Managers use estimated costs to make decisions about the ______.

Companies use cost estimates to establish ______ and use actual costs to evaluate management performance.

Direct costs can be easily traced to a cost ______.

Indirect costs are also called ______ costs.

In Style, Inc. began paying managers a ______ based on departmental sales revenue.

Whether or not a cost is easily traceable requires cost / benefit ______.

Estimated costs are used to ______ on contracts.

Evaluating proposals requires comparing estimated costs to ______ cost data.

Dean Southport addressed the allocation of copying resources with a total budgeted cost of $______.

The allocation for the management department was initially set at $______.

There are a total of ______ faculty members in the School of Business.

The cost allocation per faculty member was calculated to be $______.

The allocation for accounting based on the number of faculty was $______.

Dr. Smethers questioned the accuracy of using the number of faculty members as the ______.

For the finance department, the allocation calculated was $______.

Dr. Smethers suggested using the number of ______ as a cost driver instead of faculty members.

Managers must have reliable cost estimates to price ______.

Cost objects are the things for which we are trying to determine the ______.

A cost ______ is any factor that causes or drives an activity's costs.

Cost accumulation begins with identifying the cost ______.

The number of caps serves as a cost ______ for the cost of caps.

To determine costs, accountants use cost ______ to measure the expenses related to specific objects.

The total promotion costs will be considered worthwhile if expected revenues exceed ______.

The cost of advertising in a promotion is considered a secondary cost ______.

Managers use estimated costs to ______ prices.

Actual cost data is used to evaluate ______ performance.

Indirect costs are often referred to as ______ costs.

Assigning costs to departments requires ______ tracing and cost allocation.

Companies use ______ estimates to establish goals.

A new bonus strategy requires determining the cost of operating each ______.

Cost / benefit analysis helps in determining whether a cost is easily ______.

Managers bid on contracts based on their ______ costs.

The total costs to be allocated were $______.

Using the allocation rate, $36,000 divided by 1,200 students gives an allocation rate of $______ per student.

Costs for the Management department were allocated with a total of $______ based on 330 students.

Dr. Thompson argued that the size of the ______ is a more appropriate allocation base.

The allocation for the Finance department based on 290 students amounts to $______.

The total number of students taught during the most recent academic year was ______.

The total allocation for the Marketing department based on 220 students is $______.

Dr. Smethers sided with Dr. Thompson regarding the best approach to allocating ______ costs.

The predetermined overhead rate (POHR) is calculated using total costs to be allocated divided by total costs ______.

Grave Manufacturing's estimated supervisor's salary is $______ per year.

In January, when the allocation rate is $2.00 per unit, the total cost allocated for 800 units is $______.

The allocation rate for fixed costs will vary based on monthly production ______.

The total costs to be allocated for rent amounts to $______.

The calculation for the allocation rate involved $28,000 rent divided by 2,000,000 bottles produced, resulting in $______ per bottle.

Control over resources typically grants managers prestige and ______ over organizational operations.

Monthly production volume variations can lead to customers perceiving price differences as ______.

The total costs to be allocated are $60,000 Indirect Materials divided by the total ______ Driver.

For allocating fringe benefits, ______ hours would be a more appropriate cost driver.

The total costs to be allocated is $9360 ______ Salary.

The Lednicky Bottling Company rents its manufacturing facility for $______ per year.

The allocation rate for store manager's salary is calculated as total costs to be allocated divided by total costs ______.

If Lednicky produced 2,000,000 bottles of juice, the allocation of rental cost is spread over total ______.

The store manager allocates their salary equally among the ______.

Management must use judgment to decide on the best ______ based on allocation accuracy.

A causal relationship exists between variable overhead costs and the ______ of production.

Filmier Furniture produced 4,000 chairs and ______ desks.

Allocating fixed overhead costs often requires an allocation base that spreads total overhead cost ______ over total production.

$60,000 of indirect materials cost incurred during the period should be allocated based on the number of ______.

If the allocation of machine maintenance costs is needed, a different volume-based cost driver, ______ hours, would be appropriate.

To allocate rental costs effectively, it is important to consider both ending inventory and cost of goods ______.

Departmental managers received ______ based on each department’s profitability.

The allocation for the ______ department was determined by calculating the number of units produced.