Costing – Set 2 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 2 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Costing – Set 2 Dear ! This is Costing – Set 2 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) In normal costing, manufacturing overhead allocated is also called budget overhead applied manufacturing overhead applied labour overhead applied cost overhead applied 2 / 50 2) An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called adjusted budget rate approach unadjusted budget rate approach unadjusted allocation rate approach adjusted allocation rate approach 3 / 50 3) 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 4 / 50 4) In an accounting system, document which supports journal entries is classified as priced document cost document direct document source document 5 / 50 5) In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate budget overhead applied manufacturing overhead applied none of these labour overhead applied 6 / 50 6) If total incurred cost in a production process are $30000 and number of output units are 5000 units, then units cost will be $16 $26 $6 $60 7 / 50 7) Forth step in process costing system is to summarize flow of output compute cost for each equivalent unit v summarize total costs 8 / 50 8) If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be 79.72% 99.75% 89.72% 69.72% 9 / 50 9) Manufacturing overhead cost allocated to individual jobs is classified as manufacturing overhead applied both A and C manufacturing overhead allocated cost overhead applied 10 / 50 10) Costing system, which is a combination of process costing and job costing system is classified as average costing system hybrid costing system weighted costing system double costing system 11 / 50 11) 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 1500 units 1300 units 1500 units 1800 units 12 / 50 12) If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be $1,200 $10 $1,000 $100 13 / 50 13) Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as incremental costing system split off costing system operation costing system inventoriable costing system 14 / 50 14) If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be $802 per labour hour $805 per labour hour $905 per labour hour $803.571 per labour hour 15 / 50 15) Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as both a and b operation hybridization conversion process 16 / 50 16) Systematic way of linking group of indirect cost to a cost object is classified as direct allocation base cost allocation base indirect allocation base linked allocation base 17 / 50 17) Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called process costing system job costing system conversion expense costing system inventory costing system 18 / 50 18) Second step in processing costing system is to summarize flow of output compute output in units compute cost for each equivalent unit summarize total costs 19 / 50 19) 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 $90 $70 $80 $60 20 / 50 20) Total cost of producing similar products divided by number of units produced is a technique known as job costing system price costing system sale costing system process costing system 21 / 50 21) Third step in process costing system is to compute cost for each equivalent unit summarize flow of output compute output in units summarize total costs 22 / 50 22) 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 $107.78 109.87 $104.34 $106.56 23 / 50 23) If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be $186,750 $168,750 $125,680 $148,570 24 / 50 24) 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 25 / 50 25) Cost of previous department is a part of transferred-in costs transferred-out costs LIFO costs FIFO costs 26 / 50 26) In accounting system, a document which consists of all assigned cost for specific job is classified as job cost sheet job cost record both a and b source document 27 / 50 27) Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs partial work costs weighted average costs transferred-out costs 28 / 50 28) If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be -$8000 $8,000 $78,000 -$78000 29 / 50 29) If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be -$2000 $2,000 $48,000 -$48000 30 / 50 30) 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 31 / 50 31) If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as over allocated indirect cost applied indirect cost incurred indirect cost applied direct cost 32 / 50 32) If budgeted indirect cost base is $115 and budgeted cost allocation base is $830 per hour, then annual indirect cost (budgeted) will b $94,560 $96,450 $93,450 $95,450 33 / 50 33) Systematic way of linking group of indirect cost to a cost object is classified as indirect allocation base cost allocation base linked allocation base direct allocation base 34 / 50 34) Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as adjusted approach depreciation approach appreciation approach proration approach 35 / 50 35) Total cost related to work in process inventory is divided by total units of work done is used to calculate weighted average conversion cost weighted average revenue weighted average cost Gross weighted margin 36 / 50 36) First step in constant gross margin percentage NRV method is to allocate joint to compute Gross margin percentage total production cost of each product allocated joint costs cost of split off point 37 / 50 37) 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 budget under allocated indirect cost over allocated budget over allocated direct cost 38 / 50 38) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost over allocated budget over allocated direct cost under allocated budget 39 / 50 39) 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 1500 units 2300 units 10300 units 40 / 50 40) In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as Last-in, first-out method partial inventory costing method First-in, first-out method current period inventory method 41 / 50 41) 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% 45.50% 87.31% 55.50% 42 / 50 42) Situation in which cost object has any job, customer or product is known as direct application base cost application base sale application base price application base 43 / 50 43) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated budget over allocated budget under allocated indirect cost over allocated direct cost 44 / 50 44) Procedure of assigning direct cost to any cost abject is classified as cost tracing sales tracing cost allocation sales allocation 45 / 50 45) Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as actual costing indirect costing direct costing priced costing 46 / 50 46) Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as weighted average method Gross production method net present value method net present value method 47 / 50 47) 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 material unit costs cost of direct labour 48 / 50 48) 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 none of these job costing system 49 / 50 49) Fifth step in process costing system is to assign total cost to completed units allocate separable costs allocate joint costs compute gross margin 50 / 50 50) In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as under allocated indirect cost under allocated budget over allocated budget over allocated direct cost 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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