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