1. Understanding how the choice between allocation based on budgeted and actual rates include all of the following except

   	a.	Budgeted rates provide certainty to users about charges and motivate the support division to control costs
   	b.	It can compare budgeted and actual usage that can affect the incentives of division managers
   	c.	Budgeted usage helps in planning and efficient utilization of fixed resources; actual usage controls consumption of variable resources
   	d.	Having actual rates before the end of a fiscal period or product line run can improve management insight to control costs

5 points

Question 5

1. Which of the following is NOT a way to allocate joint costs:

   	a.	Sales value at splitoff method
   	b.	Net realizable value method
   	c.	Allocation using physical measures
   	d.	Goods receipt adjustment method

5 points

Question 6

1. Joint costs are irrelevant in in a sell or process further decision

   	a.	Because joint costs are the same whether or not further processing occurs
   	b.	Because joint costs do not take into account a CRM factor
   	c.	Because the process further decision is based on managements ability to allocate budgeted salaries accordingly
   	d.	This statement is false, they are relevant