Costing – Set 5 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 5 Dear ! This is Costing – Set 5 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) In activity based costing method implementation, indirect costs are allocated by using the One or two cost pools sustained tracing no cost pool support tracing 2 / 50 2) Difference between flexible budget amount and corresponding static budget amount is classified as cost profit variance profit volume variance sales revenue variance sales volume variance 3 / 50 3) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $10,000 $15,000 $29,000 $11,000 4 / 50 4) Costs of all activities for a group of products, rather than individual product can be classified as activity level costs batch level costs output level costs input level costs 5 / 50 5) An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as project accountability action accountability coordinating company effort action plan 6 / 50 6) Product which requires low amount of resources, but incur high per unit cost is classified as expected over cost expected under cost product over costing product under costing 7 / 50 7) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as variable budget fixed budget flexible budget multiplied budget 8 / 50 8) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $97,000 $57,000 $47,000 $87,000 9 / 50 9) If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be $39,000 $27,000 $15,000 $49,000 10 / 50 10) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate selling price variance investment variance cost variance profit variance 11 / 50 11) Costs of undertaken activities is to support individual products are known as input sustaining output sustaining product sustaining costs expected sustaining 12 / 50 12) Type of costs that cannot be traced for individual products but help in supporting an organization are classified as facility sustaining costs support tracing individual sustaining costs sustained tracing 13 / 50 13) Broad’s average use to assign cost of revenue to cost objects will be classified as refined selling system undefined costing refined costing system defined selling system 14 / 50 14) Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by expected indirect cost rate direct budget percentage budgeted direct cost rate budgeted indirect cost rate 15 / 50 15) Number of units are multiplied to per unit price, to calculate multiple budget variable flexible budget variable constant budget fixed budget variable 16 / 50 16) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $8,000 $9,000 $12,000 $21,000 17 / 50 17) Manager who is responsible for investments of company, its costs and revenues is known as revenue center investment center cost center profit center 18 / 50 18) Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as heterogeneous price pool heterogeneous cost pool homogenous cost pool homogenous price pool 19 / 50 19) In activity based costing method implementation, an output unit level costs are classified as labour cost direct cost indirect costs raw material cost 20 / 50 20) Costing system, in which individual activities are identified as cost object is considered as manufactured costing base costing activity based costing allocation costing 21 / 50 21) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $24,000 $43,000 $71,000 $61,000 22 / 50 22) In an activity based costing implementation, product’s diverse demand is based on all of these batch size process steps complexity 23 / 50 23) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $24,000 $71,000 $43,000 $61,000 24 / 50 24) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $164,000 $40,000 $124,000 $154,000 25 / 50 25) A manager, who is responsible for both cost and revenues belongs to department of revenue center profit center cost center investment center 26 / 50 26) An approach in which company under-costs it’s one product and over-costs at least one product is classified as service-cost across subsidizing product-price cross subsidizing product-cost cross subsidizing product cross subsidizing 27 / 50 27) If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be $45,000 $75,000 $65,000 $55,000 28 / 50 28) Difference between flexible budget amount and corresponding actual result is called flexible budget variance corresponding variance static budget variance resultant variance 29 / 50 29) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as activity segment responsibility center subunit center instruction center 30 / 50 30) Number of units are 5000 and per unit price is $60, then flexible budget variable would be $5,000,000 $2,000,000 $3,000,000 $1,000,000 31 / 50 31) In activity based costing system, description of activity can be classified as both a and b activity dictionary activity list active purpose 32 / 50 32) Difference between budgeted amounts and actual results is classified as variances standard deviation mean average weighted average 33 / 50 33) Factors that accelerate process of refining a costing system include increase in indirect costs product market competitions increase in product diversity all of these 34 / 50 34) Subtracted flexible budget amount can form an actual result to calculate unstated budget variance constant budget variance static budget variance flexible budget variance 35 / 50 35) Product which requires large amount of resources, but incur low per unit cost is classified as product over costing product under costing expected under cost expected over cost 36 / 50 36) Use of variables to signal whether strategies are effective or ineffective is classified as performing strategy weighted strategy warned strategy evaluating strategy 37 / 50 37) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an allocation cost purpose cost an activity different task 38 / 50 38) Sales budget variance is subtracted from flexible budget amount to calculate unstated amount static budget amount variable amount constant amount 39 / 50 39) Larger number of manager subordinates and higher level manager are termed as activity ordinates activity subordinates broader responsibility center broader subordinates 40 / 50 40) Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as cost hierarchy activity hierarchy purpose hierarchy price hierarchy 41 / 50 41) Which of following is an example of revenue center? investing center marketing department sales department segment department 42 / 50 42) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $97,000 $87,000 $37,000 $27,000 43 / 50 43) Flexible budget amount is added to flexible budget variance to calculate primary result secondary result static result actual result 44 / 50 44) A manager who is responsible for only cost of company belongs to investment center profit center revenue center cost center 45 / 50 45) Variance, if used to alert managers before time of problem is called managers warning times warning early warning varied warning 46 / 50 46) If number of units are 3000 and per unit price is $500, then flexible budget variable will be $4,500,000 $3,500,000 $1,500,000 $2,500,000 47 / 50 47) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $57,000 $67,000 $97,000 $47,000 48 / 50 48) Costs of all activities for individual products or services can be called purpose level costs activity level costs output-unit level costs input-unit level costs 49 / 50 49) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $87,000 $27,000 $37,000 $97,000 50 / 50 50) Static budget amount is subtracted from flexible budget amount to calculate the static budget variance sales budget variance resultant budget variance cost budget variance 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 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