A good cost driver does all of the following except a. Allocates costs fairly. b
ID: 2417157 • Letter: A
Question
A good cost driver does all of the following except
a. Allocates costs fairly.
b. Helps in controlling costs.
c. Can be traditional or activity based.
d. Provides greater benefits than its cost.
e. All of the above are elements of a good cost driver.
In allocating support services to other support service departments, which method is easiest?
a. Direct method
b. Reciprocal method
c. Step-down method
In allocating support services to other support service departments, which method is most accurate?
a. Direct method
b. Reciprocal method
c. Step-down method
Activity based costing is
a. Generally better than traditional costing, but more expensive to implement than traditional costing.
b. Is only suitable for large organizations.
c. Generally not as accurate as traditional costing.
d. Is generally less expensive to implement than traditional costing.
Which of the following is not true?
a. A price setter usually has a large market share,
b. Price setters must watch costs more closely than price takers,
c. A health provider in a competitive market is usually a price taker,
d. A health care provider can be both a price setter and a price taker,
e. All of the above are true.
Health care providers are
a. Price takers.
b. Price setters.
c. A price setter or price taker, depending on their costing method.
d. Either a price setter or price taker, depending on the competition.
Explanation / Answer
A good cost driver does all of the following except
a. Allocates costs fairly.
b. Helps in controlling costs.
c. Can be traditional or activity based.
d. Provides greater benefits than its cost.
e. All of the above are elements of a good cost driver.
Ans : Ans is e as all of the above are elements of a good cost driver
In allocating support services to other support service departments, which method is easiest?
a. Direct method
b. Reciprocal method
c. Step-down method
Ans; Step down method is the easiest to allocate support service costs to pther support service departments
In allocating support services to other support service departments, which method is most accurate?
a. Direct method
b. Reciprocal method
c. Step-down method
Ans: Reciprocal method is the most accurate In allocating support services to other support service departments
Activity based costing is
a. Generally better than traditional costing, but more expensive to implement than traditional costing.
b. Is only suitable for large organizations.
c. Generally not as accurate as traditional costing.
d. Is generally less expensive to implement than traditional costing.
Ans : option a is correct as ABC is Generally better than traditional costing, but more expensive to implement than traditional costing.
Which of the following is not true?
a. A price setter usually has a large market share,
b. Price setters must watch costs more closely than price takers,
c. A health provider in a competitive market is usually a price taker,
d. A health care provider can be both a price setter and a price taker,
e. All of the above are true.
Ans : All of the above are true.
Health care providers are
a. Price takers.
b. Price setters.
c. A price setter or price taker, depending on their costing method.
d. Either a price setter or price taker, depending on the competition.
Ans : Option d is correct as Health care providers are Either a price setter or price taker, depending on the competition.
A good cost driver does all of the following except
a. Allocates costs fairly.
b. Helps in controlling costs.
c. Can be traditional or activity based.
d. Provides greater benefits than its cost.
e. All of the above are elements of a good cost driver.
Ans : Ans is e as all of the above are elements of a good cost driver
In allocating support services to other support service departments, which method is easiest?
a. Direct method
b. Reciprocal method
c. Step-down method
Ans; Step down method is the easiest to allocate support service costs to pther support service departments
In allocating support services to other support service departments, which method is most accurate?
a. Direct method
b. Reciprocal method
c. Step-down method
Ans: Reciprocal method is the most accurate In allocating support services to other support service departments
Activity based costing is
a. Generally better than traditional costing, but more expensive to implement than traditional costing.
b. Is only suitable for large organizations.
c. Generally not as accurate as traditional costing.
d. Is generally less expensive to implement than traditional costing.
Ans : option a is correct as ABC is Generally better than traditional costing, but more expensive to implement than traditional costing.
Which of the following is not true?
a. A price setter usually has a large market share,
b. Price setters must watch costs more closely than price takers,
c. A health provider in a competitive market is usually a price taker,
d. A health care provider can be both a price setter and a price taker,
e. All of the above are true.
Ans : All of the above are true.
Health care providers are
a. Price takers.
b. Price setters.
c. A price setter or price taker, depending on their costing method.
d. Either a price setter or price taker, depending on the competition.
Ans : Option d is correct as Health care providers are Either a price setter or price taker, depending on the competition.