this exam can copy or paste no proplem
(Section-I)
Multiple choice type Questions. Five questions each question carries 1 mark.
From the following circle the correct Answer (5 marks)
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1. Nonroutine operating decisions are decisions such :
A) annual budgets and resource allocation decisions
B) weekly work scheduling issues
C)insource or outsource a business activity
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- Support department costs are common costs that are shared between :
- only operating departments
- only support departments.
- two or more other departments including operating departments and occasionally other support departments.
3. The general rule for a special order is to accept the order if :
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A)
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incremental revenues exceed incremental costs.
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B)
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the contribution margin exceed the relevant variable costs.
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C)the incremental revenues exceed the opportunity cost.
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4. The step-down method of allocating support department costs allocates:
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A)
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All support department costs to other support departments.
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B)
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Some but not all support department costs to operating departments
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C)
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Some but not all support department costs to all operating and support departments that use its services.
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5. Managers must keep a business segment if:
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A)
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Its contribution margin cover all its fixed costs.
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B)
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Its contribution margin covers its variable costs.
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C)
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Its contribution margin covers its avoidable fixed costs.
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(Section-II)
Short Essay type Questions. Each Question carries 2.5 marks(2X2.5=5)
Q 1 Explain the difference between operating departments and support departments.
Answer to Q 1:
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Q2 Explain in details quantitative and qualitative analysis used in special order decisions.
Answer to Q 2:
………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
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cost accounting 45 was first posted on June 25, 2020 at 7:48 pm.
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