3. A ______________ categorizes costs related to customers into different cost pools on the basis of different types of cost drivers( or cost-allocation bases) or different degrees of difficulty in determining cause- and-effect or benefits-received relationships. 4. A _________ unit is a hypothetical unit with weights based on the mix of individual units. 5. The sales-volume variance subdivides into which two variances?_______________ 6. The direct materials( DM) efficiency variance subdivides into which two variances?_________________ True / False 1. One of the four purposes of cost allocation is to measure income and assets for reporting to external parties. 2. The fairness criterion is superior to other criteria used for guiding cost- allocation decisions when the purpose of the allocation is either to provide information for economic decisions or to motivate managers and other employees. 3. When the degree of homogeneity is greater among costs, more cost pools are required to explain accurately the differences in how products use the resources of a company. 4. Customer-profitability analysis often shows that a small percentage of customers accounts for a large percentage of the company’ s operating income. 5. In the customer cost hierarchy, delivery cost for a customer order is a customer-sustaining cost. 6. An unfavorable sales-mix variance arises for an individual product when its actual sales-mix percentage is less than its budgeted salesmix percentage. 7. When multiple inputs of direct materials can be combined in varying proportions within specified limits, they are called substitutable inputs. 8. An unfavorable direct materials mix variance for an individual type of direct material arises when its actual mix percentage is less than its budgeted mix percentage. ==================================================
ACCT 349 Week 2 Quiz