Costing – Set 2 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 2 Dear ! This is Costing – Set 2 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as over allocated direct cost under allocated indirect cost under allocated budget over allocated budget 2 / 50 2) Total cost related to work in process inventory is divided by total units of work done is used to calculate Gross weighted margin weighted average cost weighted average revenue weighted average conversion cost 3 / 50 3) Systematic way of linking group of indirect cost to a cost object is classified as indirect allocation base direct allocation base cost allocation base linked allocation base 4 / 50 4) In normal costing, manufacturing overhead allocated is also called budget overhead applied cost overhead applied manufacturing overhead applied labour overhead applied 5 / 50 5) If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be $107.78 109.87 $106.56 $104.34 6 / 50 6) Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called partial work costs transferred-in costs weighted average costs transferred-out costs 7 / 50 7) Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as net present value method net present value method Gross production method weighted average method 8 / 50 8) In an accounting system, document which supports journal entries is classified as priced document source document direct document cost document 9 / 50 9) If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be 112.34 per piece 111.34 per piece 110.34 per piece 113.33 per piece 10 / 50 10) Total costs incur in a production process, is divided by total number of output units to calculate the unit costs cost of direct labour cost of indirect labour cost of direct material 11 / 50 11) In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as Last-in, first-out method First-in, first-out method current period inventory method partial inventory costing method 12 / 50 12) Cost of previous department is a part of transferred-out costs FIFO costs transferred-in costs LIFO costs 13 / 50 13) Third step in process costing system is to summarize flow of output summarize total costs compute cost for each equivalent unit compute output in units 14 / 50 14) If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be $802 per labour hour $805 per labour hour $803.571 per labour hour $905 per labour hour 15 / 50 15) In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost under allocated budget over allocated direct cost over allocated budget 16 / 50 16) First step in constant gross margin percentage NRV method is to allocate joint to compute total production cost of each product Gross margin percentage cost of split off point allocated joint costs 17 / 50 17) Costing system, which is a combination of process costing and job costing system is classified as double costing system average costing system hybrid costing system weighted costing system 18 / 50 18) If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be $1,000 $1,200 $100 $10 19 / 50 19) Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as conversion process hybridization operation both a and b 20 / 50 20) Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called inventory costing system job costing system process costing system conversion expense costing system 21 / 50 21) Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as inventoriable costing system incremental costing system operation costing system split off costing system 22 / 50 22) Second step in processing costing system is to compute output in units summarize total costs compute cost for each equivalent unit summarize flow of output 23 / 50 23) If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labour hours, then overhead rate will be $90 $80 $60 $70 24 / 50 24) An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called unadjusted budget rate approach adjusted budget rate approach adjusted allocation rate approach unadjusted allocation rate approach 25 / 50 25) If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as applied indirect cost over allocated indirect cost incurred indirect cost applied direct cost 26 / 50 26) Manufacturing overhead cost allocated to individual jobs is classified as manufacturing overhead allocated manufacturing overhead applied both A and C cost overhead applied 27 / 50 27) Situation in which cost object has any job, customer or product is known as sale application base direct application base cost application base price application base 28 / 50 28) If total incurred cost in a production process are $30000 and number of output units are 5000 units, then units cost will be $16 $26 $6 $60 29 / 50 29) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost over allocated direct cost over allocated budget under allocated budget 30 / 50 30) If budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be 45.50% 87.31% 67.30% 55.50% 31 / 50 31) Forth step in process costing system is to summarize total costs compute cost for each equivalent unit summarize flow of output v 32 / 50 32) If budgeted indirect cost base is $115 and budgeted cost allocation base is $830 per hour, then annual indirect cost (budgeted) will b $95,450 $96,450 $93,450 $94,560 33 / 50 33) A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as accounting period costing system job costing system none of these process costing system 34 / 50 34) Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate expected direct cost rate budgeted direct cost rate budgeted indirect cost rate expected indirect cost rate 35 / 50 35) Fifth step in process costing system is to allocate separable costs assign total cost to completed units allocate joint costs compute gross margin 36 / 50 36) If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be 1800 units 10300 units 2300 units 1500 units 37 / 50 37) If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be $8,000 -$78000 $78,000 -$8000 38 / 50 38) Procedure of assigning direct cost to any cost abject is classified as sales tracing cost allocation cost tracing sales allocation 39 / 50 39) Total cost of producing similar products divided by number of units produced is a technique known as process costing system price costing system job costing system sale costing system 40 / 50 40) First step in process costing system is to summarize total costs summarize flow of output compute output in units compute cost for each equivalent unit 41 / 50 41) Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as proration approach appreciation approach adjusted approach depreciation approach 42 / 50 42) If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be -$48000 $48,000 $2,000 -$2000 43 / 50 43) Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as priced costing indirect costing direct costing actual costing 44 / 50 44) If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are 1300 units 1800 units 1500 units 1500 units 45 / 50 45) Systematic way of linking group of indirect cost to a cost object is classified as indirect allocation base direct allocation base cost allocation base linked allocation base 46 / 50 46) In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate budget overhead applied none of these labour overhead applied manufacturing overhead applied 47 / 50 47) Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as over allocated direct cost over allocated budget under allocated budget under allocated indirect cost 48 / 50 48) If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be 79.72% 89.72% 69.72% 99.75% 49 / 50 49) If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be $186,750 $168,750 $125,680 $148,570 50 / 50 50) In accounting system, a document which consists of all assigned cost for specific job is classified as job cost record both a and b job cost sheet source document 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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