Allocating Costs Multiple Support Departments Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as

1. complete reciprocal costs
2. artificial costs
3. operating costs
4. flexible operating costs

MCQ 2: The method, which allocates cost of support department for operating departments by recognizing all the mutual services provided is classified as

1. indirect method
2. direct method
3. step down method
4. reciprocal method

MCQ 3: The method, which allocates the cost of support department, to operating and support departments is known as

1. indirect method
2. direct method
3. step down method
4. reciprocal method

MCQ 4: The methods used to allocate costs of reciprocal support departments include

1. direct method
2. step down
3. reciprocal method
4. all of above

MCQ 5: The method which allocates the cost of support department to only operating departments is called

1. indirect method
2. direct method
3. step down method
4. reciprocal method