Question

18. Cost allocation is necessary because: a. it is required by GAAP b. common resources are often shared by many different products or services C. direct costs are not easily traceable to individual products or services d. all of the above 19. Which of the following costs are allocated to products or services rendered? a indirect product costs b. direct product costs c. both direct and indirect product costs d. conversion costs 20 In a manufacturing operation that produces more than one product, the method of cost allocation chosen can have a major impact on: a. the total cost of raw materials b. the unit cost of each product c. conversion costs d. none of the above 21. The cost of electricity to run a machine for an 8-hour shift is $20. The machine can produce 500 units of product for each hour of operation. How much electricity cost is allocated to each unit of product? a $0.005 b. $0.04 c. $0.32 d. $2.50 costing because costs aren't known until after the . 22. Most companies use period ends. a. actual; actual material b. actual; actual overhead c. normal; actual material d. normal; actual overhead 23. The main difference between actual and normal costing lies in the accounting for costs. a. material b. labor c. overhead d. period

Answer 1

Ans: 18) = d

19) = c

20) =d

21) = a

22) = b

23) = c