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