Administrator

2164. Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as

by
complete reciprocal costs
artificial costs
operating costs
flexible operating costs
✅ The correct answer is A.
Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as complete reciprocal costs. The allocation of service department costs is incomplete if the method used for cost allocation ignores or does not give full recognition to interdepartmental services.

2165. An unsystematic risk which can be eliminated but market risk is the

by
aggregate risk
remaining risk
effective risk
ineffective risk
✅ The correct answer is B.
An unsystematic risk which can be eliminated but market risk is the An unsystematic risk which can be eliminated but market risk is the remaining risk. Unsystematic risk is the risk that is inherent in a specific company or industry. By investing in a range of companies and industries, unsystematic risk can be drastically reduced through diversification.

2168. Retained earnings are ?

by
an indication of a company’s liquidity
the same as cash in the bank
not important when determining dividends
the cumulative earnings of the company after dividends.
✅ The correct answer is D.
Retained earnings are the cumulative earnings of the company after dividends. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

205. The parties to joint venture are called

by
Friends
Principal and agent
Partners
Co-ventures
✅ The correct answer is D.
The parties to joint venture are called Co-ventures. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are “co-venturers”.

2172. Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

by
indirect method
direct method
step down method
reciprocal method
✅ The correct answer is D.
Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as reciprocal method. In the reciprocal method, the relationship between the service departments is recognized. This means service department costs are allocated to and from the other service departments.

2174. When a transaction is processed online, how can the merchant verify the customer’s identity?

by
use secure sockets layers
use secure electronic transactions
use electronic data interchange
use financial electronic data interchange
✅ The correct answer is B.
When a transaction is processed online, use secure electronic transactions the merchant can verify the customer’s identity by using secure electronic transactions.

2176. The law of variable proportions come into being when

by
There are only two variable factors
There is a fixed factor and a variable factor
All factors are variable
Variable factors yield less
✅ The correct answer is B.
The law of variable proportions come into being when there is a fixed factor and a variable factor. The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.