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