Costing – Set 1 January 30, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Costing – Set 1 Dear ! This is Costing – Set 1 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Manufacturing, distribution and marketing costs incur after split off point is classified under main costs split off costs separable costs joint costs 2 / 50 2) Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as joint products value at split off method Gross realizable value method constant gross margin percentage NRV method sales value at split off method 3 / 50 3) In process and job costing system, normal spoilage cost is considered as non inventoriable costs conversion costs sunk costs inventoriable costs 4 / 50 4) 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 indirect cost measure method relative-measure method direct cost measure method physical-measure method 5 / 50 5) An additional cost, incurred for some specific activity to bring processed product on to next production stage is incremental cost relevant cost irrelevant cost partial cost 6 / 50 6) An amount of spoilage that is natural in any particular production process is classified as normal scrap normal spoilage weighted spoilage abnormal spoilage 7 / 50 7) Types of spoilage include weighted spoilage normal spoilage both a and b abnormal spoilage 8 / 50 8) Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as rework reduced work scrap spoilage 9 / 50 9) Final sales is subtracted from net realizable value is used to calculate inseparable costs joint costs separable costs floating costs 10 / 50 10) An example of rework is detection of defective pieces before shipment short lengths from wood work defective aluminium cans recycled by manufacturer none of these 11 / 50 11) Which one of following is an example of spoilage? detection of defective pieces before shipment defective aluminium cans recycled by manufacturer all of these short lengths from wood work 12 / 50 12) Residual material which results from manufacturing products is called reduced work rework spoilage scrap 13 / 50 13) A joint cost allocation method is based on relative value of total sales, at point of split off is classified as main product cost at split off method joint products value at split off method sales value at split off method joint costs at split off point method 14 / 50 14) 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 15 / 50 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 990 units 1200 units 1100 units 1000 units 16 / 50 16) Type of spoilage, which is considered as controllable and can be avoided is called transferred-in spoilage abnormal spoilage normal spoilage transferred-out spoilage 17 / 50 17) Point in joint production process, in which two or more products are separately identifiable is termed as inseparability point step down point incremental point split off point 18 / 50 18) 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 split off product main product sunk product 19 / 50 19) Gross margin percentage in constant gross-margin percentage NRV method is based on total production total costs total revenues total labour costs 20 / 50 20) If final sales are $50000 and separable costs are $35000, then net realizable value will be $50,000 $15,000 $35,000 $85,000 21 / 50 21) Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate cost per good units transferred out revenue per good units transferred in cost per good units transferred in revenue per good units transferred out 22 / 50 22) An amount of spoilage that is not natural in a specific production process is categorized as normal scrap weighted spoilage normal spoilage abnormal spoilage 23 / 50 23) If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 14.00% 10.00% 15.00% 12.00% 24 / 50 24) Gross margin is subtracted from sales value of all production to yield marketing cost incurred on product production cost incurred on product labour cost incurred on product all of these 25 / 50 25) If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $83,000 $13,000 $35,000 $48,000 26 / 50 26) Value of sales considers sales value at split off method is of entire indirect material of accounting period portion of production of accounting period entire production of accounting period entire direct material of accounting period 27 / 50 27) Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as spoilage point inspection point rework point scrap point 28 / 50 28) Costing, which explains how and when scrap affects operating income of company is classified as normal scrap costing inventory costing conversion costing abnormal scrap costing 29 / 50 29) An expected future revenue, which diverges in unconventional course of action is classified as total revenue partial revenue relevant revenues irrelevant revenues 30 / 50 30) An expected future cost which diverges in unconventional course of action is known as partial cost relevant cost total cost irrelevant cost 31 / 50 31) Net realizable value is added into separate costs to calculate final costs split off costs final sales final cost of direct labour 32 / 50 32) 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 inventoriable spoilage Gross weighted spoilage total spoilage partial spoilage 33 / 50 33) Cost of abnormal spoilage is not treated as inventoriable costs conversion costs sunk costs non inventoriable costs 34 / 50 34) 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 total cost Gross margin in terms of labour cost Gross margin in terms of separable costs 35 / 50 35) Costs incurred in production process that yield range of products simultaneously are known as main costs split off costs separable costs joint costs 36 / 50 36) Aspects of accounting for scrap includes physical tracking non-inventoriable costing inventory costing both a and c 37 / 50 37) If net realizable value is $20000 and separable costs are $18000, then final sales will be $20,000 $38,000 $18,000 $2,000 38 / 50 38) Approaches used to allocate joint costs include all of these constant gross margin percentage NRV method sales value at split off method net realizable value method 39 / 50 39) If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be 278.1724 245.1724 268.1724 255.1724 40 / 50 40) Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called scrap spoilage rework equivalence 41 / 50 41) Difference between final sales value and separable costs is equal to net income Gross margin net realizable value Gross realizable value 42 / 50 42) Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage partial spoilage Gross weighted spoilage inventoriable spoilage 43 / 50 43) Joint cost allocation method for joint products, which is based on achievable value is known as joint products value at split off method Gross realizable value method main product cost at split off method net realizable value method 44 / 50 44) 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 cost of split off point allocated joint costs 45 / 50 45) Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute cost of split off point Gross margin percentage allocated joint costs total production cost of each product 46 / 50 46) 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 sunk product main product joint product split off product 47 / 50 47) In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as Second incremental product by-product First incremental product step down product 48 / 50 48) Any output that has total positive sales is a main product product all of these joint product 49 / 50 49) As compared to sale value of main products, by-products have unstable sale value relevant sale value low sale value high sale value 50 / 50 50) If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000 $40,000 $30,000 $400,000 Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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