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Cost Allocation, Customer Profitability and Sales Variance Analysis
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Cost Allocation, Customer Profitability and Sales Variance Analysis – MCQs
26 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
Within the customer cost hierarchy, which category includes the expenses related to all activities required to sell a batch of units to final customers?
Costs incurred to maintain individual customers
Costs associated with each unit sold to customers
Costs tied to selling a group of units to customers
Expenses related to overall corporate support
Costs linked to the entire customer base
2.
Given a flexible budget of $7,500 and a sales volume variance of $6,500, what is the value of the static budget?
$7,500
$6,500
$1,000
$10,000
3.
Which category includes customer sustaining costs, customer batch-level costs, and customer output-unit level costs?
Customer-level indirect costs
Customer-level direct expenses
Corporate-level direct costs
Corporate-level indirect expenses
4.
Within corporate expenses, how are the costs associated with funding the construction of new equipment categorized?
treasury costs
discretionary expenses
human resources expenses
corporate administrative expenses
operational costs
5.
What do we call the cost associated with a specific cost object that cannot be traced to it in a cost-effective manner?
indirect cost
partial cost
benchmark cost
direct cost
6.
Within the customer cost hierarchy, what term describes the expenses for activities that cannot be directly linked to specific distribution channels or individual customers?
optional channel expenses
corporate-sustaining costs
distribution channel expenses
engineered resource expenditures
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