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