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) Costing system, in which individual activities are identified as cost object is considered as base costing activity based costing allocation costing manufactured costing 2 / 50 2) Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance resultant budget variance static budget variance cost budget variance 3 / 50 3) 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 homogenous cost pool heterogeneous cost pool 4 / 50 4) Factors that accelerate process of refining a costing system include product market competitions increase in product diversity increase in indirect costs all of these 5 / 50 5) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate profit variance cost variance selling price variance investment variance 6 / 50 6) An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as project accountability coordinating company effort action accountability action plan 7 / 50 7) 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 $65,000 $45,000 $75,000 $55,000 8 / 50 8) Number of units are multiplied to per unit price, to calculate fixed budget variable multiple budget variable constant budget flexible budget variable 9 / 50 9) Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as price hierarchy purpose hierarchy cost hierarchy activity hierarchy 10 / 50 10) In activity based costing method implementation, indirect costs are allocated by using the support tracing One or two cost pools sustained tracing no cost pool 11 / 50 11) Costs of all activities for individual products or services can be called input-unit level costs output-unit level costs purpose level costs activity level costs 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 sustained tracing individual sustaining costs 13 / 50 13) 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 14 / 50 14) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $29,000 $11,000 $10,000 $15,000 15 / 50 15) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an activity purpose cost different task an allocation cost 16 / 50 16) Flexible budget amount is added to flexible budget variance to calculate actual result secondary result static result primary result 17 / 50 17) In activity based costing method implementation, an output unit level costs are classified as raw material cost labour cost indirect costs direct cost 18 / 50 18) If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be $39,000 $49,000 $27,000 $15,000 19 / 50 19) Subtracted flexible budget amount can form an actual result to calculate unstated budget variance constant budget variance flexible budget variance static budget variance 20 / 50 20) Variance, if used to alert managers before time of problem is called times warning early warning managers warning varied warning 21 / 50 21) 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 22 / 50 22) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as multiplied budget flexible budget variable budget fixed budget 23 / 50 23) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $9,000 $12,000 $21,000 $8,000 24 / 50 24) Difference between budgeted amounts and actual results is classified as standard deviation weighted average mean average variances 25 / 50 25) Sales budget variance is subtracted from flexible budget amount to calculate constant amount static budget amount unstated amount variable amount 26 / 50 26) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $154,000 $164,000 $124,000 $40,000 27 / 50 27) An approach in which company under-costs it’s one product and over-costs at least one product is classified as product-cost cross subsidizing service-cost across subsidizing product-price cross subsidizing product cross subsidizing 28 / 50 28) Costs of undertaken activities is to support individual products are known as output sustaining input sustaining product sustaining costs expected sustaining 29 / 50 29) A manager, who is responsible for both cost and revenues belongs to department of investment center profit center cost center revenue center 30 / 50 30) Larger number of manager subordinates and higher level manager are termed as activity subordinates activity ordinates broader responsibility center broader subordinates 31 / 50 31) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $61,000 $71,000 $24,000 $43,000 32 / 50 32) Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by budgeted direct cost rate budgeted indirect cost rate expected indirect cost rate direct budget percentage 33 / 50 33) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $71,000 $24,000 $43,000 $61,000 34 / 50 34) Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy performing strategy weighted strategy warned strategy 35 / 50 35) Manager who is responsible for investments of company, its costs and revenues is known as cost center investment center revenue center profit center 36 / 50 36) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $97,000 $27,000 $37,000 $87,000 37 / 50 37) If number of units are 3000 and per unit price is $500, then flexible budget variable will be $1,500,000 $4,500,000 $2,500,000 $3,500,000 38 / 50 38) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $57,000 $47,000 $97,000 $67,000 39 / 50 39) Costs of all activities for a group of products, rather than individual product can be classified as batch level costs activity level costs input level costs output level costs 40 / 50 40) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $27,000 $97,000 $87,000 $37,000 41 / 50 41) Difference between flexible budget amount and corresponding static budget amount is classified as cost profit variance sales volume variance profit volume variance sales revenue variance 42 / 50 42) In an activity based costing implementation, product’s diverse demand is based on all of these process steps complexity batch size 43 / 50 43) Which of following is an example of revenue center? marketing department segment department sales department investing center 44 / 50 44) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $57,000 $97,000 $87,000 $47,000 45 / 50 45) 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 46 / 50 46) A manager who is responsible for only cost of company belongs to investment center profit center cost center revenue center 47 / 50 47) Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system undefined costing defined selling system refined selling system 48 / 50 48) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as responsibility center subunit center instruction center activity segment 49 / 50 49) In activity based costing system, description of activity can be classified as both a and b activity list active purpose activity dictionary 50 / 50 50) Difference between flexible budget amount and corresponding actual result is called resultant variance corresponding variance flexible budget variance static 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 your support! 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