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## 10 Nov 160.A ______________________ incurs costs without

160.A ______________________ incurs costs without directly generating revenues. ________________________________________161.A _____________________________ provides information for managers to use to evaluate the profitability or cost effectiveness of each department’s activities. ________________________________________162.A __________________________ helps control costs and expenses and evaluates managers’ performance by assigning costs and expenses to the managers responsible for controlling them. ________________________________________163.Samm’s Department Store operates three departments (A, B and C). If total costs of \$4,500 are to be allocated on the basis of square feet of space (Dept. A = 1,500 Sq. Ft.; Dept. B = 900 Sq. Ft.; Dept. C = 600 Sq. Ft.) then Dept A’s share (in percent) of the \$4,500 cost would be __________%; Dept. B would be ________%, and Dept C would be ____________%. The amount of cost allocated to Dept. C would be \$__________. ________________________________________164.A ______________________________ accumulates and reports costs and expenses that a manager is responsible for, including budgeted amounts. ________________________________________165.___________________ are costs incurred to produce or purchase two or more products at the same time. ________________________________________166.A(n) _______________________ is a department whose manager is responsible for using the center’s assets to generate income for the center. ________________________________________167.The investment center return on total assets is __________________________ divided by ____________________________. ________________________________________168.Billabong Resources provides the following data to enable you to calculate overhead rates: Machining Department Overhead is \$16,000, which is to be allocated on estimated machine hours of 25,000. The rate per Machine Hour would be _________________. If Machining cost is to be allocated to three jobs which consumed A = 3,000 hours, B = 6,000 hours, and C = 1,000 hours respectively; then Job Ashould be charged \$__________________; Job B should be charged \$___________________; and Job C \$_______________. ________________________________________169.In the two-stage cost allocation, ______________________ costs are allocated to operating departments, and the operating department costs are allocated to ______________. ________________________________________170.A _________________ is a factor that causes the cost of an activity to go up and down. ________________________________________171.An activity __________________ is a temporary account accumulating the costs a company incurs to support an identified set of activities. ________________________________________172.Under traditional cost allocation methods, low-volume complex products are often __________________ and high-volume simpler products are likely to be ______________. ________________________________________173.The first three steps in preparing a departmental income statement are: (1) accumulate__________________ of the department, (2) allocate __________________ to the department, and (3) allocate _____________________ to the operating departments. ________________________________________174.The ________________________________ is a report of the amount of sales less direct expenses for a department. ________________________________________

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