1- Financial reporting standards require that joint costs:

a) Be treated as a period cost and expensed immediately

b )Be assigned to the product with the highest sales value

c) Be assigned to the product produced in the largest quantity.

d) Be allocated to the two or more joint products.

2- The process of dividing a total cost into parts and assigning it to cost objects is known as:

a) None of the above answers are correct.

b) divide and conquer.

c) cost division d) cost allocation.

3- Using the step method of allocating service department costs, the costs are allocated to:

a) neither service departments nor operating departments

b) both service departments and operating departments.

c) operating departments only d) service departments only.

4- A cost pool should be made up of costs with a common cost driver. True or false

5- Milton Company has three departments occupying the following amount of floor space:

How much store rent should be allocated to Department 2 if total rent is equal to $100,000? (Do not round your intermediate calculations.) a) $25,000

b) $50,000

c) $20,000

d) None of the above answers are correct.