Costing – Set 3 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 3 Dear ! This is Costing – Set 3 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Method, which allocates cost of support department to operating and support departments is known as reciprocal method direct method indirect method step down method 2 / 50 2) A document which contains information about materials of specific product, in specific department comes under material acquisition method costing method none of these selling method 3 / 50 3) Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue object reciprocal revenue revenue allocation revenue increment 4 / 50 4) Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as stand-alone revenue allocation method incremental revenue allocation method step down allocation method revenue mix allocation method 5 / 50 5) Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as single rate cost allocation method dual-rate cost-allocation method quantity variance allocation method sales mix allocation method 6 / 50 6) First ranked product, in incremental revenue allocation method, is classified as First incremental product Third incremental product Second incremental product primary product 7 / 50 7) Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as operating costs complete reciprocal costs artificial costs flexible operating costs 8 / 50 8) cost object user, who is ranked first in incremental cost allocation method is known as secondary user primary user second incremental user First incremental user 9 / 50 9) Approaches to allocate costs of support department do not include sales mix allocation method dual-rate cost-allocation method single rate cost allocation method both b and c 10 / 50 10) Department which directly adds value to product or service is known as production department both a and b operating department allocation base department 11 / 50 11) In stand-alone revenue-allocation method, type of weights available for this method is selling prices as weight unit costs as weights all of these physical units as weights 12 / 50 12) Department which provides assisting services to internal departments is classified as allocation base department production department supply department support department 13 / 50 13) Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as stand-alone revenue allocation method revenue mix allocation method incremental revenue allocation method step down allocation method 14 / 50 14) Cash sales, accounts receivables and rental receipts all are known as goods manufactured total goods sold cash receipts budget receipts 15 / 50 15) A group of individual indirect cost item is defined as direct pool item pool indirect pool cost pool 16 / 50 16) In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as incurred indirect cost applied indirect cost over allocated indirect cost applied direct cost 17 / 50 17) Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called reciprocal product bundled product step down product dual mix product 18 / 50 18) If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be $500 per machine hour $1000 per machine hour $1500 per machine hour $250 per machine hour 19 / 50 19) In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as secondary user primary user First incremental user second incremental user 20 / 50 20) According to incremental method, party which receives highest ranking in allocation of common cost is classified as First incremental party Third incremental party primary party second incremental party 21 / 50 21) Method which allocates cost of support department to only operating departments is called indirect method reciprocal method direct method step down method 22 / 50 22) Centers such as revenue, cost, investment and profit all are known as marketing center planning center financial center responsibility center 23 / 50 23) An average unit cost, applicable to each similar produced units is classified as per unit cost application cost per post cost per price cost 24 / 50 24) If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be $130 per labour hour $126.32 per labour hour $132 per labour hour $128.32 per labour hour 25 / 50 25) An approach which yields benefits of normal costing and actual manufacturing overhead is classified as unadjusted allocation rate approach adjusted allocation rate approach unadjusted budget rate approach adjusted budget rate approach 26 / 50 26) Single or multiple units of distinct services or products are classified as price job cost post 27 / 50 27) In incremental cost allocation method, cost object user who is ranked second in ranking order is known as secondary user primary user First incremental user second incremental user 28 / 50 28) Process of assigning direct or indirect cost to any cost object is known as probability assignment event assignment cost assignment cost expectation 29 / 50 29) Second ranked product in incremental revenue allocation method is termed as Second incremental product First incremental product primary product Third incremental product 30 / 50 30) A document which consists information about labour time usage, for specific job in a specific department, is known as labour time record direct time record buying time record selling time record 31 / 50 31) Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate direct rate overhead rate actual manufacturing overhead rate manufacturing overhead costs 32 / 50 32) Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as bundled cost common cost stand-alone cost incremental cost 33 / 50 33) Budgeted direct labour hours are multiplied to direct labour cost rate to calculate expected total direct labour cost budgeted total indirect labour cost budgeted total direct labour cost expected labour hours 34 / 50 34) Products, divisions and customers are examples of revenue object revenue allocation revenue increment reciprocal revenue 35 / 50 35) Term which describes assigning of indirect cost to any cost abject is classified as cost tracing sales allocation cost allocation sales tracing 36 / 50 36) Support department cost allocation method which makes no difference between variable and fixed costs is classified as single rate cost allocation method dual-rate cost-allocation method quantity variance allocation method sales mix allocation method 37 / 50 37) If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be 13000 units 10000 units 11000 units 7000 units 38 / 50 38) Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour and work for 9500 actual hours at $110 per hour, then total cost would be $3,078,000 $2,078,000 $3,065,000 $2,065,000 39 / 50 39) Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as bundled products allocation method stand-alone cost allocation method incremental cost allocation method variable cost allocation method 40 / 50 40) A particular term for which specific revenue measurement is required is known as revenue object revenue increment reciprocal revenue revenue allocation 41 / 50 41) Third ranked product in incremental revenue-allocation method is known as Third incremental product Second incremental product primary product First incremental product 42 / 50 42) If budgeted total direct labour hours are 5500 and budgeted direct labour cost is $755000, then budgeted direct labour cost rate is $137.27 per hour $138 per labour hour $140 per labour hour $142 per labour hour 43 / 50 43) If employees of division A work for 8000 hours for $90 per hour, then rate must be paid in division B in accordance of single rate method will be less than $90 per hour none of these greater than $90 per hour $90 per hour 44 / 50 44) Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as step down method reciprocal method direct method indirect method 45 / 50 45) Method which determines weights of cost allocation by considering cost of each user as separate entity is known as incremental cost allocation method bundled products allocation method stand-alone cost allocation method variable cost allocation method 46 / 50 46) Budgeted total direct labour cost is divided with budgeted total direct labour to calculate budgeted indirect labour cost rate budgeted direct labour cost rate expected direct labour cost rate expected indirect labour cost rate 47 / 50 47) If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be $2,730,000 $4,730,000 $3,730,000 $1,730,000 48 / 50 48) If budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be 14.67 per piece 15.67 per piece 16.67 per piece 13.67 per piece 49 / 50 49) An under allocated indirect cost is also called absorbed indirect cost both a and b under absorbed indirect cost under applied indirect cost 50 / 50 50) Methods used to allocate costs of reciprocal support departments include direct method all of these reciprocal method step down Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this 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