Question Details

The precision of driver tracing depends upon 



1.	Theassignmentofindirectcoststocostobjectsisreferredtoas:
a.	Allocation
b.	Directtracing
c.	Physicalobservation
d.	Costmanagement
2.	Whatisadisadvantageofassigningcostsevenlyoverallcostobjects?
a.	notallcostswillbeassigned
b.	totalcostswillbedistorted
c.	costsmaybedistortedbyconsumptionpatternsofothercostobjects
d.	noneofthese
3.	Theinsurancepaidonthefactoryis
a.	adirectcostifthecostobjectisthefactory.
b.	anindirectcostifthecostobjectistheproductproduced.
c.	couldbeeitheradirectcostoranindirectcost,dependingonthecostobject.
d.	alloftheabove.
4.	WhichofthefollowingwouldNOTbeacostthatcouldbedirectlytracedtoacustompieceoffurniturebaseduponphysicalobservation?
a.	thewoodandupholsterymaterialsthatareinthefinalpiece
b.	thedepreciationpaidonfactoryequipmentt
c.	helaboroftheworkerassemblingthepieceoffurniture
d.	thelaborofthewoodworkerwhofinishesthewoodofthepiece
5.	The precision of driver tracing depends upon 
a.	physicallyobservablerelationships.
b.	thestrengthofcausalrelationshipsdescribedbythedriver.
c.	allocationestimations.
d.	bothbandc.




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