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