Costing – Set 3 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 3 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 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) Products, divisions and customers are examples of revenue increment revenue allocation reciprocal revenue revenue object 2 / 50 2) Centers such as revenue, cost, investment and profit all are known as planning center marketing center responsibility center financial center 3 / 50 3) If budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be 11000 units 10000 units 13000 units 7000 units 4 / 50 4) According to incremental method, party which receives highest ranking in allocation of common cost is classified as primary party First incremental party Third incremental party second incremental party 5 / 50 5) Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue increment revenue object revenue allocation reciprocal revenue 6 / 50 6) Approaches to allocate costs of support department do not include both b and c single rate cost allocation method dual-rate cost-allocation method sales mix allocation method 7 / 50 7) 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 8 / 50 8) Process of assigning direct or indirect cost to any cost object is known as probability assignment event assignment cost assignment cost expectation 9 / 50 9) Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate overhead rate manufacturing overhead costs direct rate actual manufacturing overhead rate 10 / 50 10) Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as sales mix allocation method dual-rate cost-allocation method single rate cost allocation method quantity variance allocation method 11 / 50 11) Support department cost allocation method which makes no difference between variable and fixed costs is classified as single rate cost allocation method sales mix allocation method quantity variance allocation method dual-rate cost-allocation 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 14.67 per piece 16.67 per piece 15.67 per piece 13.67 per piece 13 / 50 13) First ranked product, in incremental revenue allocation method, is classified as Second incremental product Third incremental product First incremental product primary product 14 / 50 14) Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as flexible operating costs operating costs artificial costs complete reciprocal costs 15 / 50 15) In incremental cost allocation method, cost object user who is ranked second in ranking order is known as second incremental user secondary user First incremental user primary user 16 / 50 16) Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as indirect method direct method step down method reciprocal method 17 / 50 17) A group of individual indirect cost item is defined as item pool direct pool cost pool indirect pool 18 / 50 18) A document which contains information about materials of specific product, in specific department comes under costing method selling method none of these material acquisition method 19 / 50 19) Second ranked product in incremental revenue allocation method is termed as First incremental product Second incremental product Third incremental product primary product 20 / 50 20) Cash sales, accounts receivables and rental receipts all are known as total goods sold goods manufactured budget receipts cash receipts 21 / 50 21) 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 greater than $90 per hour less than $90 per hour $90 per hour 22 / 50 22) Department which directly adds value to product or service is known as both a and b operating department allocation base department production department 23 / 50 23) Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as bundled products allocation method stand-alone cost allocation method variable cost allocation method incremental cost allocation method 24 / 50 24) 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 $142 per labour hour $138 per labour hour $140 per labour hour 25 / 50 25) In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as second incremental user First incremental user primary user secondary user 26 / 50 26) Budgeted direct labour hours are multiplied to direct labour cost rate to calculate expected total direct labour cost budgeted total direct labour cost expected labour hours budgeted total indirect labour cost 27 / 50 27) In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as incurred indirect cost applied indirect cost applied direct cost over allocated indirect cost 28 / 50 28) Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as bundled cost incremental cost stand-alone cost common cost 29 / 50 29) Method which allocates cost of support department to only operating departments is called direct method reciprocal method indirect method step down method 30 / 50 30) An under allocated indirect cost is also called both a and b under applied indirect cost absorbed indirect cost under absorbed indirect cost 31 / 50 31) Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as step down allocation method revenue mix allocation method incremental revenue allocation method stand-alone revenue allocation method 32 / 50 32) Budgeted total direct labour cost is divided with budgeted total direct labour to calculate budgeted direct labour cost rate expected indirect labour cost rate budgeted indirect labour cost rate expected direct labour cost rate 33 / 50 33) In stand-alone revenue-allocation method, type of weights available for this method is all of these unit costs as weights physical units as weights selling prices as weight 34 / 50 34) Methods used to allocate costs of reciprocal support departments include all of these step down reciprocal method direct method 35 / 50 35) Method which determines weights of cost allocation by considering cost of each user as separate entity is known as variable cost allocation method stand-alone cost allocation method incremental cost allocation method bundled products allocation method 36 / 50 36) A particular term for which specific revenue measurement is required is known as reciprocal revenue revenue allocation revenue increment revenue object 37 / 50 37) Department which provides assisting services to internal departments is classified as allocation base department production department support department supply department 38 / 50 38) Single or multiple units of distinct services or products are classified as post cost price job 39 / 50 39) Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as stand-alone revenue allocation method incremental revenue allocation method step down allocation method revenue mix allocation method 40 / 50 40) cost object user, who is ranked first in incremental cost allocation method is known as First incremental user second incremental user secondary user primary user 41 / 50 41) If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be $500 per machine hour $1500 per machine hour $250 per machine hour $1000 per machine hour 42 / 50 42) Third ranked product in incremental revenue-allocation method is known as Third incremental product Second incremental product primary product First incremental product 43 / 50 43) An average unit cost, applicable to each similar produced units is classified as per post cost per unit cost per price cost application cost 44 / 50 44) Term which describes assigning of indirect cost to any cost abject is classified as cost tracing cost allocation sales tracing sales allocation 45 / 50 45) 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 reciprocal product step down product dual mix product 46 / 50 46) 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 buying time record labour time record 47 / 50 47) 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 $126.32 per labour hour $132 per labour hour $128.32 per labour hour 48 / 50 48) 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 49 / 50 49) 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 $2,078,000 $2,065,000 $3,078,000 $3,065,000 50 / 50 50) Method, which allocates cost of support department to operating and support departments is known as step down method direct method indirect method reciprocal method Your score isThe average score is 0%🎉 Challenge alert! 💡 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