Costing – Set 3 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 3 Dear ! This is Costing – Set 3 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) A particular term for which specific revenue measurement is required is known as revenue object revenue allocation reciprocal revenue revenue increment 2 / 50 2) In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as primary user secondary user second incremental user First incremental user 3 / 50 3) Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as revenue mix allocation method stand-alone revenue allocation method incremental revenue allocation method step down allocation method 4 / 50 4) In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as applied direct cost applied indirect cost over allocated indirect cost incurred indirect cost 5 / 50 5) An under allocated indirect cost is also called under applied indirect cost absorbed indirect cost both a and b under absorbed indirect cost 6 / 50 6) Second ranked product in incremental revenue allocation method is termed as primary product First incremental product Third incremental product Second incremental product 7 / 50 7) Third ranked product in incremental revenue-allocation method is known as Second incremental product First incremental product primary product Third incremental product 8 / 50 8) If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be 7000 units 11000 units 10000 units 13000 units 9 / 50 9) Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour and work for 9500 actual hours at $110 per hour, then total cost would be $2,065,000 $3,065,000 $2,078,000 $3,078,000 10 / 50 10) Approaches to allocate costs of support department do not include both b and c dual-rate cost-allocation method sales mix allocation method single rate cost allocation method 11 / 50 11) Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as indirect method step down method reciprocal method direct method 12 / 50 12) If budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be 16.67 per piece 14.67 per piece 15.67 per piece 13.67 per piece 13 / 50 13) Term which describes assigning of indirect cost to any cost abject is classified as cost allocation sales allocation sales tracing cost tracing 14 / 50 14) Method which allocates cost of support department to only operating departments is called reciprocal method direct method step down method indirect method 15 / 50 15) A group of individual indirect cost item is defined as cost pool indirect pool direct pool item pool 16 / 50 16) If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be $130 per labour hour $128.32 per labour hour $132 per labour hour $126.32 per labour hour 17 / 50 17) Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate manufacturing overhead costs actual manufacturing overhead rate direct rate overhead rate 18 / 50 18) Methods used to allocate costs of reciprocal support departments include all of these reciprocal method step down direct method 19 / 50 19) Products, divisions and customers are examples of revenue object revenue increment revenue allocation reciprocal revenue 20 / 50 20) Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as incremental revenue allocation method revenue mix allocation method step down allocation method stand-alone revenue allocation method 21 / 50 21) Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as incremental cost common cost stand-alone cost bundled cost 22 / 50 22) Method, which allocates cost of support department to operating and support departments is known as reciprocal method step down method direct method indirect method 23 / 50 23) Department which provides assisting services to internal departments is classified as production department support department allocation base department supply department 24 / 50 24) Support department cost allocation method which makes no difference between variable and fixed costs is classified as sales mix allocation method single rate cost allocation method dual-rate cost-allocation method quantity variance allocation method 25 / 50 25) Department which directly adds value to product or service is known as allocation base department production department operating department both a and b 26 / 50 26) In incremental cost allocation method, cost object user who is ranked second in ranking order is known as secondary user First incremental user second incremental user primary user 27 / 50 27) First ranked product, in incremental revenue allocation method, is classified as Third incremental product Second incremental product primary product First incremental product 28 / 50 28) Single or multiple units of distinct services or products are classified as price job post cost 29 / 50 29) Process of assigning direct or indirect cost to any cost object is known as cost expectation probability assignment cost assignment event assignment 30 / 50 30) A document which consists information about labour time usage, for specific job in a specific department, is known as selling time record direct time record labour time record buying time record 31 / 50 31) If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be $1500 per machine hour $1000 per machine hour $250 per machine hour $500 per machine hour 32 / 50 32) Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called bundled product step down product dual mix product reciprocal product 33 / 50 33) cost object user, who is ranked first in incremental cost allocation method is known as secondary user second incremental user primary user First incremental user 34 / 50 34) Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as sales mix allocation method quantity variance allocation method single rate cost allocation method dual-rate cost-allocation method 35 / 50 35) Budgeted direct labour hours are multiplied to direct labour cost rate to calculate expected total direct labour cost budgeted total indirect labour cost budgeted total direct labour cost expected labour hours 36 / 50 36) Method which determines weights of cost allocation by considering cost of each user as separate entity is known as stand-alone cost allocation method variable cost allocation method bundled products allocation method incremental cost allocation method 37 / 50 37) Cash sales, accounts receivables and rental receipts all are known as goods manufactured budget receipts cash receipts total goods sold 38 / 50 38) If budgeted total direct labour hours are 5500 and budgeted direct labour cost is $755000, then budgeted direct labour cost rate is $137.27 per hour $140 per labour hour $142 per labour hour $138 per labour hour 39 / 50 39) Centers such as revenue, cost, investment and profit all are known as financial center planning center responsibility center marketing center 40 / 50 40) Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue object reciprocal revenue revenue allocation revenue increment 41 / 50 41) An average unit cost, applicable to each similar produced units is classified as per post cost per unit cost per price cost application cost 42 / 50 42) If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be $4,730,000 $3,730,000 $1,730,000 $2,730,000 43 / 50 43) A document which contains information about materials of specific product, in specific department comes under selling method material acquisition method none of these costing method 44 / 50 44) Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as incremental cost allocation method bundled products allocation method variable cost allocation method stand-alone cost allocation method 45 / 50 45) Budgeted total direct labour cost is divided with budgeted total direct labour to calculate budgeted indirect labour cost rate expected direct labour cost rate expected indirect labour cost rate budgeted direct labour cost rate 46 / 50 46) In stand-alone revenue-allocation method, type of weights available for this method is physical units as weights unit costs as weights selling prices as weight all of these 47 / 50 47) According to incremental method, party which receives highest ranking in allocation of common cost is classified as second incremental party First incremental party primary party Third incremental party 48 / 50 48) If employees of division A work for 8000 hours for $90 per hour, then rate must be paid in division B in accordance of single rate method will be none of these $90 per hour less than $90 per hour greater than $90 per hour 49 / 50 49) An approach which yields benefits of normal costing and actual manufacturing overhead is classified as unadjusted budget rate approach adjusted budget rate approach adjusted allocation rate approach unadjusted allocation rate approach 50 / 50 50) Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as flexible operating costs artificial costs operating costs complete reciprocal costs Your score isThe average score is 0%🎉 Challenge alert! 💡 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