Costing – Set 1 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 1 Dear ! This is Costing – Set 1 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as sunk product main product split off product incremental product 2 / 50 2) In a joint process of production, two or more products that yield high volume of sales as compared to total sales of other products are classified as sunk product main product split off product joint product 3 / 50 3) Gross margin is subtracted from sales value of all production to yield marketing cost incurred on product production cost incurred on product labour cost incurred on product all of these 4 / 50 4) If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $30,000 $300,000 $40,000 $400,000 5 / 50 5) Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute cost of split off point allocated joint costs Gross margin percentage total production cost of each product 6 / 50 6) Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate abnormal spoilage rates normal spoilage rates normal scrap rates abnormal scrap rates 7 / 50 7) Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as spoilage reduced work rework scrap 8 / 50 8) If net realizable value is $20000 and separable costs are $18000, then final sales will be $2,000 $18,000 $20,000 $38,000 9 / 50 9) Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate Gross margin in terms of labour cost Gross margin in terms of total cost Gross margin in terms of separable costs Gross margin in terms of amount of money 10 / 50 10) If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 14.00% 15.00% 10.00% 12.00% 11 / 50 11) Aspects of accounting for scrap includes inventory costing both a and c non-inventoriable costing physical tracking 12 / 50 12) If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be 245.1724 268.1724 278.1724 255.1724 13 / 50 13) Net realizable value is added into separate costs to calculate split off costs final cost of direct labour final costs final sales 14 / 50 14) Which one of following is an example of spoilage? all of these short lengths from wood work detection of defective pieces before shipment defective aluminium cans recycled by manufacturer 15 / 50 15) In process and job costing system, normal spoilage cost is considered as non inventoriable costs conversion costs sunk costs inventoriable costs 16 / 50 16) Normal spoilage is subtracted from total spoilage to calculate Gross weighted spoilage partial spoilage inventoriable spoilage abnormal spoilage 17 / 50 17) Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute Gross margin percentage total production cost of each product cost of split off point allocated joint costs 18 / 50 18) Joint cost allocation method for joint products, which is based on achievable value is known as Gross realizable value method joint products value at split off method net realizable value method main product cost at split off method 19 / 50 19) Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as rework point scrap point inspection point spoilage point 20 / 50 20) Manufacturing, distribution and marketing costs incur after split off point is classified under joint costs split off costs separable costs main costs 21 / 50 21) An additional cost, incurred for some specific activity to bring processed product on to next production stage is relevant cost irrelevant cost partial cost incremental cost 22 / 50 22) Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate Gross weighted spoilage partial spoilage total spoilage inventoriable spoilage 23 / 50 23) Final sales is subtracted from net realizable value is used to calculate separable costs floating costs joint costs inseparable costs 24 / 50 24) Gross margin percentage in constant gross-margin percentage NRV method is based on total production total costs total labour costs total revenues 25 / 50 25) An amount of spoilage that is not natural in a specific production process is categorized as normal spoilage weighted spoilage normal scrap abnormal spoilage 26 / 50 26) If final sales are $50000 and separable costs are $35000, then net realizable value will be $85,000 $15,000 $35,000 $50,000 27 / 50 27) Types of spoilage include weighted spoilage abnormal spoilage normal spoilage both a and b 28 / 50 28) If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $13,000 $35,000 $83,000 $48,000 29 / 50 29) Cost of abnormal spoilage is not treated as non inventoriable costs inventoriable costs conversion costs sunk costs 30 / 50 30) Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as joint products value at split off method sales value at split off method constant gross margin percentage NRV method Gross realizable value method 31 / 50 31) Approaches used to allocate joint costs include constant gross margin percentage NRV method all of these net realizable value method sales value at split off method 32 / 50 32) In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as by-product First incremental product step down product Second incremental product 33 / 50 33) Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as indirect cost measure method physical-measure method direct cost measure method relative-measure method 34 / 50 34) An expected future cost which diverges in unconventional course of action is known as total cost partial cost relevant cost irrelevant cost 35 / 50 35) Costs incurred in production process that yield range of products simultaneously are known as joint costs separable costs split off costs main costs 36 / 50 36) An expected future revenue, which diverges in unconventional course of action is classified as partial revenue total revenue relevant revenues irrelevant revenues 37 / 50 37) A joint cost allocation method is based on relative value of total sales, at point of split off is classified as sales value at split off method joint costs at split off point method main product cost at split off method joint products value at split off method 38 / 50 38) Difference between final sales value and separable costs is equal to Gross realizable value net income Gross margin net realizable value 39 / 50 39) Type of spoilage, which is considered as controllable and can be avoided is called abnormal spoilage normal spoilage transferred-out spoilage transferred-in spoilage 40 / 50 40) If beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be 1100 units 1200 units 1000 units 990 units 41 / 50 41) Residual material which results from manufacturing products is called reduced work spoilage scrap rework 42 / 50 42) Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called scrap equivalence spoilage rework 43 / 50 43) An example of rework is defective aluminium cans recycled by manufacturer detection of defective pieces before shipment short lengths from wood work none of these 44 / 50 44) Costing, which explains how and when scrap affects operating income of company is classified as normal scrap costing inventory costing conversion costing abnormal scrap costing 45 / 50 45) Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate cost per good units transferred out revenue per good units transferred in revenue per good units transferred out cost per good units transferred in 46 / 50 46) Any output that has total positive sales is a product all of these main product joint product 47 / 50 47) Value of sales considers sales value at split off method is of portion of production of accounting period entire production of accounting period entire indirect material of accounting period entire direct material of accounting period 48 / 50 48) As compared to sale value of main products, by-products have unstable sale value high sale value relevant sale value low sale value 49 / 50 49) An amount of spoilage that is natural in any particular production process is classified as normal spoilage abnormal spoilage normal scrap weighted spoilage 50 / 50 50) Point in joint production process, in which two or more products are separately identifiable is termed as incremental point split off point step down point inseparability point 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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