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