Costing – Set 2 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 2 Dear ! This is Costing – Set 2 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be 113.33 per piece 110.34 per piece 111.34 per piece 112.34 per piece 2 / 50 2) If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be $48,000 $2,000 -$48000 -$2000 3 / 50 3) Systematic way of linking group of indirect cost to a cost object is classified as direct allocation base linked allocation base indirect allocation base cost allocation base 4 / 50 4) 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 5 / 50 5) If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as incurred indirect cost applied indirect cost over allocated indirect cost applied direct cost 6 / 50 6) Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as net present value method weighted average method Gross production method net present value method 7 / 50 7) 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% 69.72% 99.75% 89.72% 8 / 50 8) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as over allocated direct cost over allocated budget under allocated budget under allocated indirect cost 9 / 50 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 10 / 50 10) Fifth step in process costing system is to allocate separable costs compute gross margin assign total cost to completed units allocate joint costs 11 / 50 11) 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 $80 $90 $60 $70 12 / 50 12) If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be -$78000 $78,000 $8,000 -$8000 13 / 50 13) Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as actual costing direct costing indirect costing priced costing 14 / 50 14) 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 these 15 / 50 15) Systematic way of linking group of indirect cost to a cost object is classified as linked allocation base direct allocation base cost allocation base indirect allocation base 16 / 50 16) 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 $95,450 $93,450 17 / 50 17) In accounting system, a document which consists of all assigned cost for specific job is classified as both a and b job cost record job cost sheet source document 18 / 50 18) Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate expected direct cost rate expected indirect cost rate budgeted indirect cost rate budgeted direct cost rate 19 / 50 19) Cost of previous department is a part of LIFO costs FIFO costs transferred-out costs transferred-in costs 20 / 50 20) Forth step in process costing system is to summarize total costs v compute cost for each equivalent unit summarize flow of output 21 / 50 21) Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as inventoriable costing system incremental costing system operation costing system split off costing system 22 / 50 22) 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 1300 units 1500 units 1800 units 1500 units 23 / 50 23) 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 $100 $1,000 24 / 50 24) First step in process costing system is to compute output in units summarize flow of output compute cost for each equivalent unit summarize total costs 25 / 50 25) First step in constant gross margin percentage NRV method is to allocate joint to compute Gross margin percentage allocated joint costs total production cost of each product cost of split off point 26 / 50 26) In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as over allocated direct cost under allocated indirect cost under allocated budget over allocated budget 27 / 50 27) 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 conversion process operation hybridization 28 / 50 28) 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-out costs transferred-in costs partial work costs weighted average costs 29 / 50 29) Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called job costing system conversion expense costing system process costing system inventory costing system 30 / 50 30) Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as adjusted approach appreciation approach depreciation approach proration approach 31 / 50 31) Manufacturing overhead cost allocated to individual jobs is classified as cost overhead applied manufacturing overhead allocated manufacturing overhead applied both A and C 32 / 50 32) Total costs incur in a production process, is divided by total number of output units to calculate the cost of direct material cost of direct labour unit costs cost of indirect labour 33 / 50 33) 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 10300 units 1800 units 1500 units 2300 units 34 / 50 34) 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 35 / 50 35) 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 direct cost over allocated budget 36 / 50 36) 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 55.50% 45.50% 87.31% 67.30% 37 / 50 37) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as over allocated direct cost under allocated indirect cost over allocated budget under allocated budget 38 / 50 38) 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 $186,750 $125,680 $148,570 39 / 50 39) 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 $104.34 $107.78 109.87 $106.56 40 / 50 40) Total cost of producing similar products divided by number of units produced is a technique known as price costing system sale costing system process costing system job costing system 41 / 50 41) 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 current period inventory method First-in, first-out method 42 / 50 42) Costing system, which is a combination of process costing and job costing system is classified as weighted costing system double costing system hybrid costing system average costing system 43 / 50 43) An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called unadjusted allocation rate approach unadjusted budget rate approach adjusted allocation rate approach adjusted budget rate approach 44 / 50 44) In normal costing, manufacturing overhead allocated is also called cost overhead applied budget overhead applied labour overhead applied manufacturing overhead applied 45 / 50 45) Third step in process costing system is to summarize total costs summarize flow of output compute output in units compute cost for each equivalent unit 46 / 50 46) Procedure of assigning direct cost to any cost abject is classified as sales allocation sales tracing cost tracing cost allocation 47 / 50 47) In an accounting system, document which supports journal entries is classified as cost document direct document priced document source document 48 / 50 48) Second step in processing costing system is to compute cost for each equivalent unit compute output in units summarize total costs summarize flow of output 49 / 50 49) If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be $803.571 per labour hour $802 per labour hour $905 per labour hour $805 per labour hour 50 / 50 50) Total cost related to work in process inventory is divided by total units of work done is used to calculate Gross weighted margin weighted average cost weighted average conversion cost weighted average revenue 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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