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