Costing – Set 5 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 5 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 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) Number of units are multiplied to per unit price, to calculate fixed budget variable multiple budget variable constant budget flexible budget variable 2 / 50 2) In an activity based costing implementation, product’s diverse demand is based on complexity batch size process steps all of these 3 / 50 3) If number of units are 3000 and per unit price is $500, then flexible budget variable will be $3,500,000 $1,500,000 $4,500,000 $2,500,000 4 / 50 4) Difference between flexible budget amount and corresponding actual result is called flexible budget variance resultant variance static budget variance corresponding variance 5 / 50 5) Difference between budgeted amounts and actual results is classified as mean average weighted average standard deviation variances 6 / 50 6) In activity based costing system, description of activity can be classified as activity list activity dictionary active purpose both a and b 7 / 50 7) Costing system, in which individual activities are identified as cost object is considered as allocation costing base costing manufactured costing activity based costing 8 / 50 8) 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 homogenous price pool heterogeneous cost pool homogenous cost pool 9 / 50 9) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as activity segment subunit center instruction center responsibility center 10 / 50 10) Difference between flexible budget amount and corresponding static budget amount is classified as sales volume variance cost profit variance profit volume variance sales revenue variance 11 / 50 11) Flexible budget amount is added to flexible budget variance to calculate static result primary result actual result secondary result 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) 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 14 / 50 14) 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 $75,000 $45,000 $65,000 $55,000 15 / 50 15) Variance, if used to alert managers before time of problem is called early warning managers warning varied warning times warning 16 / 50 16) An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as coordinating company effort project accountability action accountability action plan 17 / 50 17) Sales budget variance is subtracted from flexible budget amount to calculate static budget amount unstated amount variable amount constant amount 18 / 50 18) Static budget amount is subtracted from flexible budget amount to calculate the resultant budget variance cost budget variance static budget variance sales budget variance 19 / 50 19) A manager, who is responsible for both cost and revenues belongs to department of revenue center investment center profit center cost center 20 / 50 20) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $87,000 $97,000 $27,000 $37,000 21 / 50 21) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $97,000 $47,000 $87,000 $57,000 22 / 50 22) An approach in which company under-costs it’s one product and over-costs at least one product is classified as product cross subsidizing product-price cross subsidizing service-cost across subsidizing product-cost cross subsidizing 23 / 50 23) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as flexible budget variable budget fixed budget multiplied budget 24 / 50 24) Use of variables to signal whether strategies are effective or ineffective is classified as performing strategy evaluating strategy weighted strategy warned strategy 25 / 50 25) If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be $27,000 $39,000 $49,000 $15,000 26 / 50 26) Factors that accelerate process of refining a costing system include product market competitions all of these increase in product diversity increase in indirect costs 27 / 50 27) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $43,000 $71,000 $61,000 $24,000 28 / 50 28) Number of units are 5000 and per unit price is $60, then flexible budget variable would be $3,000,000 $1,000,000 $5,000,000 $2,000,000 29 / 50 29) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $154,000 $124,000 $40,000 $164,000 30 / 50 30) Costs of all activities for a group of products, rather than individual product can be classified as input level costs batch level costs output level costs activity level costs 31 / 50 31) Which of following is an example of revenue center? segment department sales department investing center marketing department 32 / 50 32) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate cost variance profit variance investment variance selling price variance 33 / 50 33) Costs of all activities for individual products or services can be called purpose level costs input-unit level costs output-unit level costs activity level costs 34 / 50 34) Larger number of manager subordinates and higher level manager are termed as broader responsibility center activity subordinates activity ordinates broader subordinates 35 / 50 35) Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted indirect cost rate budgeted direct cost rate expected indirect cost rate direct budget percentage 36 / 50 36) In activity based costing method implementation, an output unit level costs are classified as raw material cost labour cost indirect costs direct cost 37 / 50 37) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $12,000 $8,000 $21,000 $9,000 38 / 50 38) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $15,000 $11,000 $29,000 $10,000 39 / 50 39) Product which requires large amount of resources, but incur low per unit cost is classified as expected over cost product over costing expected under cost product under costing 40 / 50 40) Costs of undertaken activities is to support individual products are known as output sustaining product sustaining costs expected sustaining input sustaining 41 / 50 41) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as different task purpose cost an activity an allocation cost 42 / 50 42) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $67,000 $47,000 $97,000 $57,000 43 / 50 43) Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system defined selling system undefined costing refined selling system 44 / 50 44) 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 45 / 50 45) In activity based costing method implementation, indirect costs are allocated by using the One or two cost pools no cost pool sustained tracing support tracing 46 / 50 46) Manager who is responsible for investments of company, its costs and revenues is known as profit center investment center cost center revenue center 47 / 50 47) Subtracted flexible budget amount can form an actual result to calculate static budget variance constant budget variance unstated budget variance flexible budget variance 48 / 50 48) Product which requires low amount of resources, but incur high per unit cost is classified as expected under cost expected over cost product under costing product over costing 49 / 50 49) A manager who is responsible for only cost of company belongs to profit center cost center investment center revenue center 50 / 50 50) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $27,000 $97,000 $87,000 $37,000 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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