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) 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 sales value at split off method main product cost at split off method joint costs at split off point method 2 / 50 2) An expected future revenue, which diverges in unconventional course of action is classified as relevant revenues partial revenue total revenue irrelevant revenues 3 / 50 3) 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 $40,000 $400,000 4 / 50 4) Costing, which explains how and when scrap affects operating income of company is classified as inventory costing conversion costing abnormal scrap costing normal scrap costing 5 / 50 5) Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal scrap rates abnormal scrap rates abnormal spoilage rates normal spoilage rates 6 / 50 6) Second 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 7 / 50 7) Gross margin is subtracted from sales value of all production to yield labour cost incurred on product production cost incurred on product all of these marketing cost incurred on product 8 / 50 8) 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 split off product main product incremental product 9 / 50 9) Approaches used to allocate joint costs include sales value at split off method net realizable value method constant gross margin percentage NRV method all of these 10 / 50 10) Value of sales considers sales value at split off method is of portion of production of accounting period entire indirect material of accounting period entire direct material of accounting period entire production of accounting period 11 / 50 11) Costs incurred in production process that yield range of products simultaneously are known as main costs joint costs split off costs separable costs 12 / 50 12) 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 allocated joint costs cost of split off point 13 / 50 13) If final sales are $50000 and separable costs are $35000, then net realizable value will be $85,000 $15,000 $50,000 $35,000 14 / 50 14) Point in joint production process, in which two or more products are separately identifiable is termed as step down point inseparability point split off point incremental point 15 / 50 15) 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 16 / 50 16) An expected future cost which diverges in unconventional course of action is known as relevant cost irrelevant cost total cost partial cost 17 / 50 17) Normal spoilage is subtracted from total spoilage to calculate Gross weighted spoilage abnormal spoilage partial spoilage inventoriable spoilage 18 / 50 18) Manufacturing, distribution and marketing costs incur after split off point is classified under joint costs split off costs separable costs main costs 19 / 50 19) Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate cost per good units transferred in cost per good units transferred out revenue per good units transferred in revenue per good units transferred out 20 / 50 20) In process and job costing system, normal spoilage cost is considered as conversion costs inventoriable costs sunk costs non inventoriable costs 21 / 50 21) If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $83,000 $48,000 $35,000 $13,000 22 / 50 22) If net realizable value is $20000 and separable costs are $18000, then final sales will be $18,000 $38,000 $20,000 $2,000 23 / 50 23) Net realizable value is added into separate costs to calculate split off costs final sales final cost of direct labour final costs 24 / 50 24) Percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate Gross margin in terms of total cost Gross margin in terms of amount of money Gross margin in terms of labour cost Gross margin in terms of separable costs 25 / 50 25) In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as First incremental product by-product Second incremental product step down product 26 / 50 26) Aspects of accounting for scrap includes both a and c non-inventoriable costing inventory costing physical tracking 27 / 50 27) If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be 255.1724 278.1724 245.1724 268.1724 28 / 50 28) Joint cost allocation method for joint products, which is based on achievable value is known as Gross realizable value method main product cost at split off method net realizable value method joint products value at split off method 29 / 50 29) If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 12.00% 15.00% 10.00% 14.00% 30 / 50 30) An amount of spoilage that is natural in any particular production process is classified as normal spoilage normal scrap abnormal spoilage weighted spoilage 31 / 50 31) Final sales is subtracted from net realizable value is used to calculate joint costs inseparable costs separable costs floating costs 32 / 50 32) Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as spoilage point scrap point rework point inspection point 33 / 50 33) Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as sales value at split off method Gross realizable value method joint products value at split off method constant gross margin percentage NRV method 34 / 50 34) 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 35 / 50 35) Any output that has total positive sales is a joint product product main product all of these 36 / 50 36) Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as reduced work spoilage rework scrap 37 / 50 37) An amount of spoilage that is not natural in a specific production process is categorized as abnormal spoilage normal spoilage weighted spoilage normal scrap 38 / 50 38) 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 scrap equivalence rework 39 / 50 39) 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 joint product split off product main product 40 / 50 40) 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 relative-measure method physical-measure method direct cost measure method 41 / 50 41) Difference between final sales value and separable costs is equal to net realizable value Gross realizable value Gross margin net income 42 / 50 42) Gross margin percentage in constant gross-margin percentage NRV method is based on total costs total production total revenues total labour costs 43 / 50 43) Which one of following is an example of spoilage? short lengths from wood work detection of defective pieces before shipment all of these defective aluminium cans recycled by manufacturer 44 / 50 44) Residual material which results from manufacturing products is called rework reduced work scrap spoilage 45 / 50 45) As compared to sale value of main products, by-products have low sale value relevant sale value unstable sale value high sale value 46 / 50 46) Cost of abnormal spoilage is not treated as non inventoriable costs inventoriable costs sunk costs conversion costs 47 / 50 47) Types of spoilage include both a and b weighted spoilage normal spoilage abnormal spoilage 48 / 50 48) 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 1000 units 990 units 1100 units 1200 units 49 / 50 49) Type of spoilage, which is considered as controllable and can be avoided is called normal spoilage transferred-in spoilage transferred-out spoilage abnormal spoilage 50 / 50 50) 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 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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