Type 2 Allocations Are Cost That Flow From

question 122

Multiple Choice

Type 2 allocations are cost that flow from:

• A) the product to the customer
• B) one organizational unit to another
• C) one organizational unit to the product
• D) the accounting system to an organizational unit

Identify characteristics of service organizations including intangible outputs, inventory levels, and labour costs.

Differentiate between various costing methods applicable to service entities (job costing, process costing, activity-based costing).

Understand the role of costs in service pricing, service promotion, and cost control.

Grasp the concept of indirect costs and the significance of cost drivers in allocating these costs in service entities.

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Definitions:

Two-Piece Clutch Brake

Usually refers to a replacement clutch brake that can be fitted to a transmission input shaft without removing the transmission. An example is the Spicer KwikKonnect.

Integral Brake

A braking system where the brake components are integrated into a non-removable part of the vehicle's structure.

Bellhousing Flange Face

Refers to the surface area on the automotive bellhousing that mounts directly to the engine or transmission, acting as an interface for alignment and connection.

Flywheel Housing

A component that encloses and supports the flywheel in engines and machinery, providing a mounting point for the transmission or other systems.