Question: True / False 1 . Cost allocation is equally important in cash and accrual systems. 2 . You must always start a cost allocation with

True/False
1. Cost allocation is equally important in cash and accrual systems.
2. You must always start a cost allocation with administrative costs.
3. Cost allocation is a way to distribute costs from support
departments to revenue-producing departments.
4. The order in which the services are allocated makes a difference to the final, all-inclusive costs of each particular revenue department or cost object. True
5. In the step-down cost-allocation method, the order in which support areas are allocated can affect the organizations total costs.
6. In the step-down cost-allocation method, the order in which support areas are allocated can affect a revenue departments fully allocated costs.
7. Fixed costs per unit change with respect to volume.

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