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