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) An approach in which company under-costs it’s one product and over-costs at least one product is classified as product cross subsidizing service-cost across subsidizing product-cost cross subsidizing product-price cross subsidizing 2 / 50 2) Larger number of manager subordinates and higher level manager are termed as broader subordinates broader responsibility center activity subordinates activity ordinates 3 / 50 3) A manager, who is responsible for both cost and revenues belongs to department of revenue center profit center cost center investment center 4 / 50 4) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $97,000 $87,000 $27,000 $37,000 5 / 50 5) Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance static budget variance resultant budget variance cost budget variance 6 / 50 6) Product which requires large amount of resources, but incur low per unit cost is classified as product under costing expected under cost expected over cost product over costing 7 / 50 7) Use of variables to signal whether strategies are effective or ineffective is classified as weighted strategy performing strategy evaluating strategy warned strategy 8 / 50 8) 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 expected indirect cost rate direct budget percentage budgeted direct cost rate 9 / 50 9) In activity based costing method implementation, indirect costs are allocated by using the support tracing no cost pool One or two cost pools sustained tracing 10 / 50 10) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as activity segment responsibility center subunit center instruction center 11 / 50 11) Factors that accelerate process of refining a costing system include all of these increase in product diversity increase in indirect costs product market competitions 12 / 50 12) 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 13 / 50 13) Difference between budgeted amounts and actual results is classified as weighted average standard deviation mean average variances 14 / 50 14) Difference between flexible budget amount and corresponding static budget amount is classified as cost profit variance sales revenue variance profit volume variance sales volume variance 15 / 50 15) Subtracted flexible budget amount can form an actual result to calculate flexible budget variance unstated budget variance static budget variance constant budget variance 16 / 50 16) Costs of undertaken activities is to support individual products are known as product sustaining costs expected sustaining input sustaining output sustaining 17 / 50 17) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $61,000 $24,000 $71,000 $43,000 18 / 50 18) 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 project accountability action accountability 19 / 50 19) Sales budget variance is subtracted from flexible budget amount to calculate unstated amount constant amount static budget amount variable amount 20 / 50 20) In activity based costing method implementation, an output unit level costs are classified as direct cost labour cost indirect costs raw material cost 21 / 50 21) Variance, if used to alert managers before time of problem is called managers warning varied warning early warning times warning 22 / 50 22) 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 23 / 50 23) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $37,000 $97,000 $87,000 $27,000 24 / 50 24) Costs of all activities for a group of products, rather than individual product can be classified as input level costs batch level costs activity level costs output level costs 25 / 50 25) Product which requires low amount of resources, but incur high per unit cost is classified as product over costing expected under cost expected over cost product under costing 26 / 50 26) In an activity based costing implementation, product’s diverse demand is based on complexity process steps all of these batch size 27 / 50 27) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $154,000 $164,000 $124,000 $40,000 28 / 50 28) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $29,000 $11,000 $10,000 $15,000 29 / 50 29) Manager who is responsible for investments of company, its costs and revenues is known as revenue center profit center cost center investment center 30 / 50 30) Number of units are multiplied to per unit price, to calculate fixed budget variable multiple budget variable flexible budget variable constant budget 31 / 50 31) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $57,000 $97,000 $47,000 $87,000 32 / 50 32) Flexible budget amount is added to flexible budget variance to calculate secondary result actual result primary result static result 33 / 50 33) Number of units are 5000 and per unit price is $60, then flexible budget variable would be $1,000,000 $2,000,000 $5,000,000 $3,000,000 34 / 50 34) A manager who is responsible for only cost of company belongs to investment center profit center revenue center cost center 35 / 50 35) Which of following is an example of revenue center? investing center segment department marketing department sales department 36 / 50 36) 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 37 / 50 37) Difference between flexible budget amount and corresponding actual result is called flexible budget variance corresponding variance resultant variance static budget variance 38 / 50 38) Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as cost hierarchy activity hierarchy price hierarchy purpose hierarchy 39 / 50 39) Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system undefined costing defined selling system refined selling system 40 / 50 40) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $8,000 $21,000 $9,000 $12,000 41 / 50 41) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an allocation cost purpose cost different task an activity 42 / 50 42) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $71,000 $43,000 $61,000 $24,000 43 / 50 43) Costs of all activities for individual products or services can be called output-unit level costs activity level costs input-unit level costs purpose level costs 44 / 50 44) Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous cost pool heterogeneous cost pool homogenous price pool heterogeneous price pool 45 / 50 45) 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 $65,000 $45,000 $75,000 $55,000 46 / 50 46) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $67,000 $57,000 $97,000 $47,000 47 / 50 47) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as variable budget flexible budget multiplied budget fixed budget 48 / 50 48) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate investment variance profit variance selling price variance cost variance 49 / 50 49) In activity based costing system, description of activity can be classified as activity dictionary both a and b activity list active purpose 50 / 50 50) Costing system, in which individual activities are identified as cost object is considered as activity based costing manufactured costing base costing allocation costing 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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