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