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