Sample Exam Questions

1 ) Which with the following is not a primary purpose succumbed the text pertaining to allocating costs? A. To supply information to get economic decisions

B. To motivate managers and other employees

C. To measure cash flow and property for credit reporting to exterior parties M. To engender cost consciousness among managers to improve decisions 2 . Which usually of the following is considered associated with an objective when compared to a criterion? A. Cause-and-effect

N. Benefits received

C. Fairness or equity

D. Capability to bear

a few. Homogeneity is utilized to

A. develop cost pools when the costs have similar or identical cost-allocation bottom. B. develop cost swimming pools of comparable amounts for allocation uses. C. develop cost swimming pools based upon similarity of application of costs to be given. D. develop cost swimming pools only for activity-based costing.

4. Information about selling price discounting can be handy in examining revenues of shoppers if A. sales people are effectively trained in revenue forecasting.

B. records inside the information system are stored of savings in selling selling price below list price. C. a totally enforced business policy is place with regards to volume-based price discounts. Deb. sales people are on an incentive prepare that is depending on revenues. 5. Which from the factors that managers must consider in deciding the allowance of resources across consumers might offer misleading signals about falling a current customer? A. Potential for customer growth

B. Likelihood of customer retention

C. Long-run customer earnings

D. Ability to learn from buyer

6. To guide cost share decisions, the fairness or equity requirements is: A. the criterion often offered in authorities contracts

N. superior when the purpose of price allocation is for economic decisions C. applied more frequently compared to the other criteria

D. the principal criterion used in activity-based costing

7. To steer cost share decisions, the cause-and-effect requirements: A. can be used less regularly than the other criteria



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