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 budget sales units are 8000, ending inventory is 2000 units and beginning inventory is 3000, then budget production would be 11000 units 13000 units 10000 units 7000 units 2 / 50 2) An under allocated indirect cost is also called both a and b under absorbed indirect cost under applied indirect cost absorbed indirect cost 3 / 50 3) 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 4 / 50 4) Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as incremental revenue allocation method stand-alone revenue allocation method revenue mix allocation method step down allocation method 5 / 50 5) Method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as incremental cost allocation method variable cost allocation method stand-alone cost allocation method bundled products allocation method 6 / 50 6) A group of individual indirect cost item is defined as cost pool direct pool item pool indirect pool 7 / 50 7) 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 13.67 per piece 15.67 per piece 16.67 per piece 8 / 50 8) In stand-alone revenue-allocation method, type of weights available for this method is all of these unit costs as weights selling prices as weight physical units as weights 9 / 50 9) 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 10 / 50 10) Budgeted direct labour hours are multiplied to direct labour cost rate to calculate budgeted total indirect labour cost budgeted total direct labour cost expected total direct labour cost expected labour hours 11 / 50 11) If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be $250 per machine hour $1000 per machine hour $500 per machine hour $1500 per machine hour 12 / 50 12) 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 13 / 50 13) Approaches to allocate costs of support department do not include sales mix allocation method dual-rate cost-allocation method single rate cost allocation method both b and c 14 / 50 14) Methods used to allocate costs of reciprocal support departments include reciprocal method all of these step down direct method 15 / 50 15) 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 $3,078,000 $3,065,000 $2,078,000 16 / 50 16) Second ranked product in incremental revenue allocation method is termed as First incremental product Third incremental product primary product Second incremental product 17 / 50 17) An average unit cost, applicable to each similar produced units is classified as per unit cost per post cost per price cost application cost 18 / 50 18) If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be $132 per labour hour $130 per labour hour $128.32 per labour hour $126.32 per labour hour 19 / 50 19) Method, which allocates cost of support department to operating and support departments is known as reciprocal method indirect method direct method step down method 20 / 50 20) If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be $1,730,000 $2,730,000 $3,730,000 $4,730,000 21 / 50 21) Cash sales, accounts receivables and rental receipts all are known as cash receipts goods manufactured budget receipts total goods sold 22 / 50 22) 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 23 / 50 23) A document which contains information about materials of specific product, in specific department comes under costing method material acquisition method selling method none of these 24 / 50 24) According to incremental method, party which receives highest ranking in allocation of common cost is classified as Third incremental party First incremental party second incremental party primary party 25 / 50 25) 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 $140 per labour hour $142 per labour hour $137.27 per hour 26 / 50 26) Budgeted total direct labour cost is divided with budgeted total direct labour to calculate budgeted direct labour cost rate expected direct labour cost rate budgeted indirect labour cost rate expected indirect labour cost rate 27 / 50 27) Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as complete reciprocal costs flexible operating costs artificial costs operating costs 28 / 50 28) A particular term for which specific revenue measurement is required is known as revenue increment revenue allocation revenue object reciprocal revenue 29 / 50 29) cost object user, who is ranked first in incremental cost allocation method is known as primary user secondary user second incremental user First incremental user 30 / 50 30) In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as incurred indirect cost applied direct cost over allocated indirect cost applied indirect cost 31 / 50 31) Process of assigning direct or indirect cost to any cost object is known as cost assignment cost expectation event assignment probability assignment 32 / 50 32) Centers such as revenue, cost, investment and profit all are known as financial center responsibility center planning center marketing center 33 / 50 33) An approach which yields benefits of normal costing and actual manufacturing overhead is classified as unadjusted allocation rate approach adjusted allocation rate approach adjusted budget rate approach unadjusted budget rate approach 34 / 50 34) In incremental cost allocation method, cost object user who is ranked third in ranking order is classified as primary user second incremental user secondary user First incremental user 35 / 50 35) Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate direct rate manufacturing overhead costs actual manufacturing overhead rate overhead rate 36 / 50 36) 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 bundled cost stand-alone cost 37 / 50 37) First ranked product, in incremental revenue allocation method, is classified as First incremental product Second incremental product primary product Third incremental product 38 / 50 38) Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as quantity variance allocation method single rate cost allocation method dual-rate cost-allocation method sales mix allocation method 39 / 50 39) Term which describes assigning of indirect cost to any cost abject is classified as cost allocation sales allocation sales tracing cost tracing 40 / 50 40) Third ranked product in incremental revenue-allocation method is known as Second incremental product Third incremental product primary product First incremental product 41 / 50 41) Single or multiple units of distinct services or products are classified as post job price cost 42 / 50 42) Products, divisions and customers are examples of revenue allocation reciprocal revenue revenue object revenue increment 43 / 50 43) Department which provides assisting services to internal departments is classified as production department support department allocation base department supply department 44 / 50 44) In incremental cost allocation method, cost object user who is ranked second in ranking order is known as primary user secondary user second incremental user First incremental user 45 / 50 45) Method which allocates cost of support department to only operating departments is called step down method direct method indirect method reciprocal method 46 / 50 46) Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as step down allocation method stand-alone revenue allocation method incremental revenue allocation method revenue mix allocation method 47 / 50 47) Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as revenue allocation reciprocal revenue revenue object revenue increment 48 / 50 48) Department which directly adds value to product or service is known as operating department production department both a and b allocation base department 49 / 50 49) Method which determines weights of cost allocation by considering cost of each user as separate entity is known as bundled products allocation method variable cost allocation method stand-alone cost allocation method incremental cost allocation method 50 / 50 50) A document which consists information about labour time usage, for specific job in a specific department, is known as labour time record buying time record direct time record selling time record Your score isThe average score is 0%🎉 Challenge alert! 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