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) An amount of spoilage that is natural in any particular production process is classified as weighted spoilage abnormal spoilage normal scrap normal spoilage 2 / 50 2) Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate abnormal scrap rates abnormal spoilage rates normal spoilage rates normal scrap rates 3 / 50 3) Which one of following is an example of spoilage? defective aluminium cans recycled by manufacturer all of these short lengths from wood work detection of defective pieces before shipment 4 / 50 4) In process and job costing system, normal spoilage cost is considered as sunk costs non inventoriable costs inventoriable costs conversion costs 5 / 50 5) An amount of spoilage that is not natural in a specific production process is categorized as weighted spoilage abnormal spoilage normal spoilage normal scrap 6 / 50 6) Costs incurred in production process that yield range of products simultaneously are known as main costs split off costs joint costs separable costs 7 / 50 7) 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 8 / 50 8) Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as spoilage reduced work rework scrap 9 / 50 9) Gross margin percentage in constant gross-margin percentage NRV method is based on total costs total production total labour costs total revenues 10 / 50 10) 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 cost per good units transferred out revenue per good units transferred out 11 / 50 11) 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 physical-measure method indirect cost measure method relative-measure method 12 / 50 12) 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 268.1724 278.1724 255.1724 13 / 50 13) 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 1100 units 1200 units 990 units 14 / 50 14) 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 $400,000 $40,000 $30,000 15 / 50 15) Manufacturing, distribution and marketing costs incur after split off point is classified under split off costs joint costs separable costs main costs 16 / 50 16) Net realizable value is added into separate costs to calculate final sales split off costs final costs final cost of direct labour 17 / 50 17) 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 main product cost at split off method joint costs at split off point method sales value at split off method 18 / 50 18) An expected future revenue, which diverges in unconventional course of action is classified as partial revenue irrelevant revenues relevant revenues total revenue 19 / 50 19) 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 20 / 50 20) 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 21 / 50 21) Aspects of accounting for scrap includes inventory costing non-inventoriable costing both a and c physical tracking 22 / 50 22) 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 joint products value at split off method net realizable value method 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) 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 total spoilage inventoriable spoilage partial spoilage 25 / 50 25) Difference between final sales value and separable costs is equal to Gross realizable value net realizable value Gross margin net income 26 / 50 26) 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 incremental product main product split off product 27 / 50 27) 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 First incremental product Second incremental product by-product 28 / 50 28) An expected future cost which diverges in unconventional course of action is known as partial cost irrelevant cost relevant cost total cost 29 / 50 29) If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 15.00% 10.00% 14.00% 12.00% 30 / 50 30) 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 31 / 50 31) Any output that has total positive sales is a all of these joint product product main product 32 / 50 32) 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 constant gross margin percentage NRV method Gross realizable value method joint products value at split off method 33 / 50 33) If final sales are $50000 and separable costs are $35000, then net realizable value will be $50,000 $15,000 $85,000 $35,000 34 / 50 34) Residual material which results from manufacturing products is called rework scrap spoilage reduced work 35 / 50 35) Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage partial spoilage inventoriable spoilage Gross weighted spoilage 36 / 50 36) If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $48,000 $13,000 $35,000 $83,000 37 / 50 37) Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute Gross margin percentage allocated joint costs cost of split off point total production cost of each product 38 / 50 38) An example of rework is none of these defective aluminium cans recycled by manufacturer detection of defective pieces before shipment short lengths from wood work 39 / 50 39) As compared to sale value of main products, by-products have high sale value relevant sale value unstable sale value low sale value 40 / 50 40) 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 41 / 50 41) Cost of abnormal spoilage is not treated as non inventoriable costs inventoriable costs conversion costs sunk costs 42 / 50 42) Types of spoilage include weighted spoilage normal spoilage abnormal spoilage both a and b 43 / 50 43) 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 separable costs Gross margin in terms of amount of money Gross margin in terms of labour cost 44 / 50 44) Final sales is subtracted from net realizable value is used to calculate floating costs joint costs inseparable costs separable costs 45 / 50 45) Type of spoilage, which is considered as controllable and can be avoided is called normal spoilage transferred-out spoilage abnormal spoilage transferred-in spoilage 46 / 50 46) 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 47 / 50 47) 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 48 / 50 48) An additional cost, incurred for some specific activity to bring processed product on to next production stage is partial cost relevant cost irrelevant cost incremental cost 49 / 50 49) 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 sunk product joint product main product 50 / 50 50) 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 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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