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Quiz 12
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Q.1
Vertical dashed line in graphical representation of cost function represents the
cost representation
irrelevant range
relevant range
graphical representation
Q.2
Forth step in process costing system is to
summarize total costs
compute cost for each equivalent unit
summarize flow of output
compute output in units
Q.3
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as
weighted average method
net present value method
Gross production method
net present value method
Q.4
If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be
1800 units
2300 units
10300 units
1500 units
Q.5
First step in process costing system is to
summarize flow of output
compute output in units
summarize total costs
compute cost for each equivalent unit
Q.6
If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as
applied indirect cost
applied direct cost
incurred indirect cost
over allocated indirect cost
Q.7
Cost of previous department is a part of
transferred-in costs
transferred-out costs
FIFO costs
LIFO costs
Q.8
Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate
expected indirect cost rate
expected direct cost rate
budgeted indirect cost rate
budgeted direct cost rate
Q.9
Situation in which cost object has any job, customer or product is known as
cost application base
sale application base
price application base
direct application base
Q.10
Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as
proration approach
appreciation approach
depreciation approach
adjusted approach
Q.11
If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be
$168,750
$148,570
$186,750
$125,680
Q.12
In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as
no homogeneous relationship
homogeneous relationship
heterogeneous relationship
an extreme relationship
Q.13
Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as
t-value
b-value
d-value
c-value
Q.14
Second step in processing costing system is to
summarize total costs
compute cost for each equivalent unit
summarize flow of output
compute output in units
Q.15
Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as
conversion process
operation
hybridization
both a and b
Q.16
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called
partial work costs
transferred-in costs
transferred-out costs
weighted average costs
Q.17
In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as
partial inventory costing method
current period inventory method
Last-in, first-out method
First-in, first-out method
Q.18
Total costs incur in a production process, is divided by total number of output units to calculate the
cost of indirect labour
cost of direct labour
cost of direct material
unit costs
Q.19
If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
1800 units
1500 units
1300 units
1500 units
Q.20
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as
accounting period costing system
process costing system
job costing system
none of above
Q.21
An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called
unadjusted budget rate approach
adjusted allocation rate approach
unadjusted allocation rate approach
adjusted budget rate approach
Q.22
If budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be
67.30%
87.31%
55.50%
45.50%
Q.23
If total incurred cost in a production process are $30000 and number of output units are 5000 units, then units cost will be
$16
$60
$6
$26
Q.24
If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be
$78,000
-$78000
-$8000
$8,000
Q.25
If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labour hours, then overhead rate will be
$60
$90
$80
$70
Q.26
Fifth step in process costing system is to
allocate separable costs
allocate joint costs
compute gross margin
assign total cost to completed units
Q.27
Procedure of assigning direct cost to any cost abject is classified as
sales allocation
cost tracing
cost allocation
sales tracing
Q.28
If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be
$48,000
-$2000
$2,000
-$48000
Q.29
Manufacturing overhead cost allocated to individual jobs is classified as
manufacturing overhead allocated
cost overhead applied
manufacturing overhead applied
both A and C
Q.30
If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be
112.34 per piece
113.33 per piece
111.34 per piece
110.34 per piece
Q.31
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as
over allocated budget
under allocated budget
under allocated indirect cost
over allocated direct cost
Q.32
Systematic way of linking group of indirect cost to a cost object is classified as
linked allocation base
direct allocation base
indirect allocation base
cost allocation base
Q.33
Single or multiple units of distinct services or products are classified as
cost
job
post
price
Q.34
A document which consists information about labour time usage, for specific job in a specific department, is known as
selling time record
labour time record
buying time record
direct time record
Q.35
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as
priced costing
actual costing
direct costing
indirect costing
Q.36
In normal costing, manufacturing overhead allocated is also called
manufacturing overhead applied
labour overhead applied
cost overhead applied
budget overhead applied
Q.37
If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be
109.87
$107.78
$106.56
$104.34
Q.38
In an accounting system, document which supports journal entries is classified as
cost document
priced document
source document
direct document
Q.39
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as
under allocated indirect cost
over allocated direct cost
over allocated budget
under allocated budget
Q.40
If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be
$126.32 per labour hour
$128.32 per labour hour
$130 per labour hour
$132 per labour hour
Q.41
If budgeted total direct labour hours are 5500 and budgeted direct labour cost is $755000, then budgeted direct labour cost rate is
$138 per labour hour
$137.27 per hour
$140 per labour hour
$142 per labour hour
Q.42
In accounting system, a document which consists of all assigned cost for specific job is classified as
job cost record
job cost sheet
source document
both a and b
Q.43
If budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be
15.67 per piece
16.67 per piece
14.67 per piece
13.67 per piece
Q.44
An under allocated indirect cost is also called
under applied indirect cost
under absorbed indirect cost
absorbed indirect cost
both a and b
Q.45
Method which determines weights of cost allocation by considering cost of each user as separate entity is known as
bundled products allocation method
variable cost allocation method
stand-alone cost allocation method
incremental cost allocation method
Q.46
Budgeted total direct labour cost is divided with budgeted total direct labour to calculate
budgeted indirect labour cost rate
expected direct labour cost rate
budgeted direct labour cost rate
expected indirect labour cost rate
Q.47
In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as
incurred indirect cost
over allocated indirect cost
applied indirect cost
applied direct cost
Q.48
A group of individual indirect cost item is defined as
direct pool
cost pool
indirect pool
item pool
Q.49
Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate
actual manufacturing overhead rate
manufacturing overhead costs
overhead rate
direct rate
Q.50
An approach which yields benefits of normal costing and actual manufacturing overhead is classified as
unadjusted allocation rate approach
adjusted budget rate approach
unadjusted budget rate approach
adjusted allocation rate approach
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