Question: The potential effect of using a single averaged rate to calculate the support cost or indirect cost allocation rate is: Select one: a. That some

The potential effect of using a single averaged rate to calculate the support cost or indirect cost allocation rate is: Select one:

a. That some product lines subsidize other lines

b. That the indirect cost allocation rate accurately reflects the amount of costs that each product line absorbs.

c. That it is very expensive when compared to other alternatives.

d. That the return on sales is accurately computed.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Montgomery, Inc. makes its products in two production departments: Assembly and Packing. The Assembly Dept. is mechanized, while the Packing Dept. is labor-paced. The firm uses separate predetermined...

Q:

Accouting HW Questions 1. Bella, Inc. manufactures two kinds of bagstotes and Satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the...

Q:

0/1pts swered Question 22 Bag Ladies, Inc. manufactures two kinds of bags- totes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the...

Q:

Jezebel, Inc. completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below. Direct labor cost $700 Direct materials cost $110 Machine hours 6 hours Direct...

Q:

Managerial Accounting HW 1. The Refining Department of Kristian, Inc. had 85,000 pounds of materials to account for in the current month. Of the 85,000 pounds, 65,000 pounds were completed and...

Q:

Jezebel, Inc. completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below. Direct labor cost $700 Direct materials cost $110 Machine hours 6 hours Direct...

Q:

Accounting 1. The cost of materials for beginning work - in - process is $10,300. Materials costs added during the period were $131,700 The equivalent units of production for materials is 59,000...

Q:

The Weighted Average method is used for process costing at Elvis Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details...

Q:

Question 1 1) With the aid of diagrams, explain the following types of Cost a. Fixed cost b. Stepped fixed cost c. Variable cost d. Semi-variable cost II) Adobe Ltd recorded the following data for a...

Q:

Direct Tracing, Driver Tracing, and Allocation Cost is the cash or cash equivalent value given up for goods and services that are expected to bring a future benefit to the firm. When the cost is used...

Q:

Create a portfolio of 10 stocks. there should be no more than two stocks from the same industry in your portfolio.stocks related to health care.pull stock quotes into excel from msn money. insert a...

Q:

14. In a recent marketing experiment, customers were given one of four different types of soft drink and asked to taste it. They were then asked to rate the soft drink in terms of overall quality....

Q:

Using the alternative Form of the Derivative In Exercises 6 9 7 6 , use the alternative form of the derivative to find the derivative at x = c , if it exists. 6 9 . f ( x ) = x 3 + 2 x 2 + 1 , c = 2...

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

1. Identify three approaches to culture.

Q:

f. What was your neighborhood like? Discuss your answers with classmates. Analyze how your own cultural position is unique and how it is similar to that of others.

Q:

2. Define communication.