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Quiz 1
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Q.1
Net realizable value is added into separate costs to calculate
split off costs
final cost of direct labour
final sales
final costs
Q.2
Gross margin percentage in constant gross-margin percentage NRV method is based on
total labour costs
total production
total revenues
total costs
Q.3
Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute
Gross margin percentage
total production cost of each product
allocated joint costs
cost of split off point
Q.4
An expected future cost which diverges in unconventional course of action is known as
partial cost
total cost
irrelevant cost
relevant cost
Q.5
If net realizable value is $20000 and separable costs are $18000, then final sales will be
$20,000
$18,000
$2,000
$38,000
Q.6
An example of rework is
short lengths from wood work
defective aluminium cans recycled by manufacturer
detection of defective pieces before shipment
none of above
Q.7
If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be
245.1724
255.1724
278.1724
268.1724
Q.8
Aspects of accounting for scrap includes
physical tracking
non-inventoriable costing
inventory costing
both a and c
Q.9
Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate
cost per good units transferred out
cost per good units transferred in
revenue per good units transferred out
revenue per good units transferred in
Q.10
Type of spoilage, which is considered as controllable and can be avoided is called
abnormal spoilage
normal spoilage
transferred-in spoilage
transferred-out spoilage
Q.11
Value of sales considers sales value at split off method is of
entire direct material of accounting period
entire production of accounting period
portion of production of accounting period
entire indirect material of accounting period
Q.12
Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called
spoilage
rework
scrap
equivalence
Q.13
Residual material which results from manufacturing products is called
reduced work
spoilage
rework
scrap
Q.14
Normal spoilage is subtracted from total spoilage to calculate
abnormal spoilage
Gross weighted spoilage
inventoriable spoilage
partial spoilage
Q.15
If beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be
1200 units
990 units
1100 units
1000 units
Q.16
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate
normal spoilage rates
abnormal spoilage rates
normal scrap rates
abnormal scrap rates
Q.17
An amount of spoilage that is not natural in a specific production process is categorized as
normal scrap
normal spoilage
abnormal spoilage
weighted spoilage
Q.18
Costs incurred in production process that yield range of products simultaneously are known as
separable costs
joint costs
main costs
split off costs
Q.19
In process and job costing system, normal spoilage cost is considered as
conversion costs
sunk costs
inventoriable costs
non inventoriable costs
Q.20
Types of spoilage include
normal spoilage
abnormal spoilage
weighted spoilage
both a and b
Q.21
Costing, which explains how and when scrap affects operating income of company is classified as
inventory costing
conversion costing
normal scrap costing
abnormal scrap costing
Q.22
An amount of spoilage that is natural in any particular production process is classified as
normal scrap
normal spoilage
abnormal spoilage
weighted spoilage
Q.23
Cost of abnormal spoilage is not treated as
conversion costs
sunk costs
inventoriable costs
non inventoriable costs
Q.24
Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as
direct cost measure method
indirect cost measure method
physical-measure method
relative-measure method
Q.25
If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be
$35,000
$13,000
$83,000
$48,000
Q.26
Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate
Gross weighted spoilage
inventoriable spoilage
partial spoilage
total spoilage
Q.27
Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as
rework point
inspection point
spoilage point
scrap point
Q.28
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as
reduced work
spoilage
rework
scrap
Q.29
Difference between final sales value and separable costs is equal to
net income
net realizable value
Gross margin
Gross realizable value
Q.30
As compared to sale value of main products, by-products have
low sale value
high sale value
unstable sale value
relevant sale value
Q.31
If final sales are $50000 and separable costs are $35000, then net realizable value will be
$15,000
$85,000
$35,000
$50,000
Q.32
Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate
Gross margin in terms of amount of money
Gross margin in terms of separable costs
Gross margin in terms of total cost
Gross margin in terms of labour cost
Q.33
Final sales is subtracted from net realizable value is used to calculate
separable costs
inseparable costs
joint costs
floating costs
Q.34
Which one of following is an example of spoilage?
short lengths from wood work
defective aluminium cans recycled by manufacturer
detection of defective pieces before shipment
all of above
Q.35
If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be
14.00%
15.00%
10.00%
12.00%
Q.36
Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute
allocated joint costs
cost of split off point
Gross margin percentage
total production cost of each product
Q.37
In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as
incremental product
sunk product
main product
split off product
Q.38
An expected future revenue, which diverges in unconventional course of action is classified as
partial revenue
total revenue
relevant revenues
irrelevant revenues
Q.39
Gross margin is subtracted from sales value of all production to yield
labour cost incurred on product
production cost incurred on product
marketing cost incurred on product
all of above
Q.40
In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as
split off product
joint product
sunk product
main product
Q.41
Joint cost allocation method for joint products, which is based on achievable value is known as
joint products value at split off method
main product cost at split off method
Gross realizable value method
net realizable value method
Q.42
Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as
sales value at split off method
joint products value at split off method
constant gross margin percentage NRV method
Gross realizable value method
Q.43
Manufacturing, distribution and marketing costs incur after split off point is classified under
separable costs
joint costs
main costs
split off costs
Q.44
If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be
$30,000
$300,000
$40,000
$400,000
Q.45
Approaches used to allocate joint costs include
sales value at split off method
net realizable value method
constant gross margin percentage NRV method
all of above
Q.46
Any output that has total positive sales is a
joint product
main product
product
all of above
Q.47
Point in joint production process, in which two or more products are separately identifiable is termed as
step down point
incremental point
split off point
inseparability point
Q.48
Describe the cost unit applicable to the Bicycle industry:
per part of bicycle
per bicycle
per tonne
per day
Q.49
Second ranked product in incremental revenue allocation method is termed as
primary product
First incremental product
Second incremental product
Third incremental product
Q.50
Strength of relationship between cost driver and cost is considered as
badness of residual
goodness of residual
badness of fit
goodness of fit
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