California State University, Long Beach ACCT MANAGERIAL Chapter 6 (quiz 7) Question1)Which of the following allocation methods is conceptually the best? -              Step-down method -              Direct method -                              Reciprocal method -              Indirect method   Question 2 Which of the following cost drivers is the most effective for allocating housekeeping costs to patient services departments? -                              The number of hours of housekeeping services consumed by each department -              The space occupied by each department -              The revenues generated by each department -              The salary expense of each department   Question 3 Traditional allocation process includes 4 steps

California State University, Long Beach

ACCT MANAGERIAL

Chapter 6 (quiz 7)

Question1)Which of the following allocation methods is conceptually the best?

-              Step-down method

-              Direct method

-                              Reciprocal method

-              Indirect method

Question 2

Which of the following cost drivers is the most effective for allocating housekeeping costs to patient services departments?

-                              The number of hours of housekeeping services consumed by each department

-              The space occupied by each department

-              The revenues generated by each department

-              The salary expense of each department

Question 3

Traditional allocation process includes 4 steps. Which of the following is the third step?

-              Determine the cost driver

-                              Calculate the allocation rate

-              Determine the allocation amount

-              Identify the cost pool

Question 4

Which of the following service line costing methods is to calculate the cost for each unit, then multiple by the number of unit to calculate cost for each service?

-                              Relative value unit costing

-              Activity-based costing

-              Reciprocal-based costing

-              Cost-to-Charge Ratio

Question 5

Mercy Hospital operates an on-site laboratory. Total (direct and allocated indirect) cost associated with the laboratory is about $500,000. Of the $500,000, Mercy estimates that

$350,000 could be eliminated if the laboratory were closed. What is the amount of indirect costs of the laboratory?

-              $850, 000

-              $500,000

-              $150,000

-              $350,000