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