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