Costing – Set 5 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 5 Dear ! This is Costing – Set 5 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $97,000 $67,000 $57,000 $47,000 2 / 50 2) Larger number of manager subordinates and higher level manager are termed as broader responsibility center activity ordinates broader subordinates activity subordinates 3 / 50 3) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $37,000 $97,000 $87,000 $27,000 4 / 50 4) In an activity based costing implementation, product’s diverse demand is based on batch size complexity all of these process steps 5 / 50 5) An approach in which company under-costs it’s one product and over-costs at least one product is classified as product-cost cross subsidizing service-cost across subsidizing product cross subsidizing product-price cross subsidizing 6 / 50 6) A manager who is responsible for only cost of company belongs to investment center cost center revenue center profit center 7 / 50 7) Factors that accelerate process of refining a costing system include increase in product diversity increase in indirect costs all of these product market competitions 8 / 50 8) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as subunit center activity segment responsibility center instruction center 9 / 50 9) Costs of all activities for a group of products, rather than individual product can be classified as output level costs input level costs batch level costs activity level costs 10 / 50 10) Manager who is responsible for investments of company, its costs and revenues is known as revenue center profit center investment center cost center 11 / 50 11) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $43,000 $61,000 $24,000 $71,000 12 / 50 12) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $97,000 $37,000 $87,000 $27,000 13 / 50 13) Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by expected indirect cost rate direct budget percentage budgeted indirect cost rate budgeted direct cost rate 14 / 50 14) Variance, if used to alert managers before time of problem is called managers warning early warning times warning varied warning 15 / 50 15) An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as coordinating company effort action plan action accountability project accountability 16 / 50 16) Product which requires large amount of resources, but incur low per unit cost is classified as expected under cost product under costing product over costing expected over cost 17 / 50 17) Sales budget variance is subtracted from flexible budget amount to calculate variable amount static budget amount constant amount unstated amount 18 / 50 18) Type of costs that cannot be traced for individual products but help in supporting an organization are classified as support tracing facility sustaining costs individual sustaining costs sustained tracing 19 / 50 19) Costs of all activities for individual products or services can be called purpose level costs activity level costs output-unit level costs input-unit level costs 20 / 50 20) Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as price hierarchy activity hierarchy purpose hierarchy cost hierarchy 21 / 50 21) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $61,000 $71,000 $24,000 $43,000 22 / 50 22) Subtracted flexible budget amount can form an actual result to calculate static budget variance unstated budget variance flexible budget variance constant budget variance 23 / 50 23) In activity based costing method implementation, an output unit level costs are classified as indirect costs raw material cost direct cost labour cost 24 / 50 24) If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be $15,000 $39,000 $27,000 $49,000 25 / 50 25) Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy warned strategy weighted strategy performing strategy 26 / 50 26) In activity based costing system, description of activity can be classified as both a and b activity dictionary activity list active purpose 27 / 50 27) Which of following is an example of revenue center? investing center segment department marketing department sales department 28 / 50 28) If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be $55,000 $65,000 $45,000 $75,000 29 / 50 29) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as multiplied budget variable budget flexible budget fixed budget 30 / 50 30) Broad’s average use to assign cost of revenue to cost objects will be classified as defined selling system refined costing system refined selling system undefined costing 31 / 50 31) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate cost variance investment variance profit variance selling price variance 32 / 50 32) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $164,000 $154,000 $124,000 $40,000 33 / 50 33) Product which requires low amount of resources, but incur high per unit cost is classified as product under costing expected under cost product over costing expected over cost 34 / 50 34) Difference between flexible budget amount and corresponding static budget amount is classified as profit volume variance sales volume variance cost profit variance sales revenue variance 35 / 50 35) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as different task an allocation cost purpose cost an activity 36 / 50 36) Number of units are 5000 and per unit price is $60, then flexible budget variable would be $1,000,000 $2,000,000 $3,000,000 $5,000,000 37 / 50 37) Costs of undertaken activities is to support individual products are known as product sustaining costs expected sustaining input sustaining output sustaining 38 / 50 38) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $97,000 $47,000 $87,000 $57,000 39 / 50 39) In activity based costing method implementation, indirect costs are allocated by using the One or two cost pools no cost pool support tracing sustained tracing 40 / 50 40) Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous price pool heterogeneous price pool homogenous cost pool heterogeneous cost pool 41 / 50 41) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $11,000 $10,000 $15,000 $29,000 42 / 50 42) Costing system, in which individual activities are identified as cost object is considered as activity based costing manufactured costing allocation costing base costing 43 / 50 43) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $8,000 $21,000 $12,000 $9,000 44 / 50 44) Difference between flexible budget amount and corresponding actual result is called flexible budget variance resultant variance static budget variance corresponding variance 45 / 50 45) Difference between budgeted amounts and actual results is classified as mean average standard deviation weighted average variances 46 / 50 46) Number of units are multiplied to per unit price, to calculate multiple budget variable flexible budget variable constant budget fixed budget variable 47 / 50 47) If number of units are 3000 and per unit price is $500, then flexible budget variable will be $4,500,000 $1,500,000 $2,500,000 $3,500,000 48 / 50 48) Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance static budget variance resultant budget variance cost budget variance 49 / 50 49) Flexible budget amount is added to flexible budget variance to calculate secondary result actual result primary result static result 50 / 50 50) A manager, who is responsible for both cost and revenues belongs to department of revenue center profit center investment center cost center Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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