Costing – Set 1 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 1 📝 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 1 Dear ! This is Costing – Set 1 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be 268.1724 278.1724 255.1724 245.1724 2 / 50 2) Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal spoilage rates abnormal scrap rates abnormal spoilage rates normal scrap rates 3 / 50 3) Which one of following is an example of spoilage? defective aluminium cans recycled by manufacturer detection of defective pieces before shipment all of these short lengths from wood work 4 / 50 4) Manufacturing, distribution and marketing costs incur after split off point is classified under joint costs separable costs split off costs main costs 5 / 50 5) 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 split off product sunk product main product joint product 6 / 50 6) Residual material which results from manufacturing products is called scrap reduced work rework spoilage 7 / 50 7) An expected future cost which diverges in unconventional course of action is known as irrelevant cost relevant cost total cost partial cost 8 / 50 8) 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 step down product First incremental product Second incremental product 9 / 50 9) Net realizable value is added into separate costs to calculate final costs final sales split off costs final cost of direct labour 10 / 50 10) 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 11 / 50 11) Aspects of accounting for scrap includes non-inventoriable costing both a and c physical tracking inventory costing 12 / 50 12) 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 total spoilage Gross weighted spoilage inventoriable spoilage partial spoilage 13 / 50 13) If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 15.00% 10.00% 14.00% 12.00% 14 / 50 14) Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as spoilage rework scrap reduced work 15 / 50 15) Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as constant gross margin percentage NRV method joint products value at split off method sales value at split off method Gross realizable value method 16 / 50 16) Type of spoilage, which is considered as controllable and can be avoided is called normal spoilage transferred-in spoilage transferred-out spoilage abnormal spoilage 17 / 50 17) Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute cost of split off point total production cost of each product allocated joint costs Gross margin percentage 18 / 50 18) If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000 $40,000 $30,000 $400,000 19 / 50 19) 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 physical-measure method indirect cost measure method relative-measure method direct cost measure method 20 / 50 20) Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage partial spoilage Gross weighted spoilage inventoriable spoilage 21 / 50 21) Any output that has total positive sales is a product all of these joint product main product 22 / 50 22) 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 990 units 1100 units 1000 units 1200 units 23 / 50 23) 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 amount of money Gross margin in terms of separable costs Gross margin in terms of total cost 24 / 50 24) Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called spoilage equivalence rework scrap 25 / 50 25) In process and job costing system, normal spoilage cost is considered as non inventoriable costs sunk costs conversion costs inventoriable costs 26 / 50 26) Costs incurred in production process that yield range of products simultaneously are known as split off costs separable costs main costs joint costs 27 / 50 27) An amount of spoilage that is natural in any particular production process is classified as normal spoilage normal scrap abnormal spoilage weighted spoilage 28 / 50 28) 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 main product split off product sunk product incremental product 29 / 50 29) Point in joint production process, in which two or more products are separately identifiable is termed as step down point inseparability point incremental point split off point 30 / 50 30) Approaches used to allocate joint costs include sales value at split off method constant gross margin percentage NRV method net realizable value method all of these 31 / 50 31) Difference between final sales value and separable costs is equal to Gross realizable value Gross margin net realizable value net income 32 / 50 32) If net realizable value is $20000 and separable costs are $18000, then final sales will be $18,000 $38,000 $2,000 $20,000 33 / 50 33) Gross margin percentage in constant gross-margin percentage NRV method is based on total revenues total costs total labour costs total production 34 / 50 34) Costing, which explains how and when scrap affects operating income of company is classified as inventory costing conversion costing normal scrap costing abnormal scrap costing 35 / 50 35) Value of sales considers sales value at split off method is of entire indirect material of accounting period entire production of accounting period portion of production of accounting period entire direct material of accounting period 36 / 50 36) An additional cost, incurred for some specific activity to bring processed product on to next production stage is relevant cost irrelevant cost incremental cost partial cost 37 / 50 37) An expected future revenue, which diverges in unconventional course of action is classified as relevant revenues irrelevant revenues partial revenue total revenue 38 / 50 38) 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 main product cost at split off method joint costs at split off point method joint products value at split off method 39 / 50 39) 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 out revenue per good units transferred in cost per good units transferred in 40 / 50 40) If final sales are $50000 and separable costs are $35000, then net realizable value will be $15,000 $85,000 $35,000 $50,000 41 / 50 41) Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as spoilage point inspection point scrap point rework point 42 / 50 42) Joint cost allocation method for joint products, which is based on achievable value is known as net realizable value method Gross realizable value method joint products value at split off method main product cost at split off method 43 / 50 43) An example of rework is short lengths from wood work detection of defective pieces before shipment defective aluminium cans recycled by manufacturer none of these 44 / 50 44) Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute Gross margin percentage cost of split off point total production cost of each product allocated joint costs 45 / 50 45) An amount of spoilage that is not natural in a specific production process is categorized as normal scrap weighted spoilage abnormal spoilage normal spoilage 46 / 50 46) Types of spoilage include normal spoilage abnormal spoilage both a and b weighted spoilage 47 / 50 47) Cost of abnormal spoilage is not treated as sunk costs inventoriable costs non inventoriable costs conversion costs 48 / 50 48) Final sales is subtracted from net realizable value is used to calculate joint costs separable costs inseparable costs floating costs 49 / 50 49) If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $48,000 $83,000 $13,000 $35,000 50 / 50 50) As compared to sale value of main products, by-products have unstable sale value low sale value high sale value relevant sale value 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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