Costing – Set 5 January 30, 2025 by aasi Home › Commerce › Costing Costing Costing – Set 5 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 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) In activity based costing method implementation, an output unit level costs are classified as labour cost raw material cost direct cost indirect costs 2 / 50 2) If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be $40,000 $154,000 $164,000 $124,000 3 / 50 3) 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 price pool homogenous cost pool heterogeneous price pool 4 / 50 4) An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as action accountability action plan coordinating company effort project accountability 5 / 50 5) Costs of undertaken activities is to support individual products are known as product sustaining costs input sustaining output sustaining expected sustaining 6 / 50 6) If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be $57,000 $97,000 $47,000 $67,000 7 / 50 7) If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be $21,000 $9,000 $8,000 $12,000 8 / 50 8) Use of variables to signal whether strategies are effective or ineffective is classified as weighted strategy warned strategy evaluating strategy performing strategy 9 / 50 9) Subtracted flexible budget amount can form an actual result to calculate constant budget variance unstated budget variance static budget variance flexible budget variance 10 / 50 10) In activity based costing system, description of activity can be classified as active purpose activity dictionary activity list both a and b 11 / 50 11) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $71,000 $24,000 $61,000 $43,000 12 / 50 12) A manager who is responsible for only cost of company belongs to profit center investment center cost center revenue center 13 / 50 13) In activity based costing method implementation, indirect costs are allocated by using the sustained tracing support tracing One or two cost pools no cost pool 14 / 50 14) Factors that accelerate process of refining a costing system include increase in indirect costs all of these increase in product diversity product market competitions 15 / 50 15) Number of units are 5000 and per unit price is $60, then flexible budget variable would be $1,000,000 $5,000,000 $3,000,000 $2,000,000 16 / 50 16) A manager, who is responsible for both cost and revenues belongs to department of cost center profit center investment center revenue center 17 / 50 17) 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 18 / 50 18) Costs of all activities for a group of products, rather than individual product can be classified as activity level costs batch level costs input level costs output level costs 19 / 50 19) Difference between flexible budget amount and corresponding actual result is called flexible budget variance static budget variance resultant variance corresponding variance 20 / 50 20) Sales budget variance is subtracted from flexible budget amount to calculate constant amount static budget amount variable amount unstated amount 21 / 50 21) In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as different task an activity an allocation cost purpose cost 22 / 50 22) Product which requires low amount of resources, but incur high per unit cost is classified as product over costing expected over cost product under costing expected under cost 23 / 50 23) An approach in which company under-costs it’s one product and over-costs at least one product is classified as product-price cross subsidizing product cross subsidizing service-cost across subsidizing product-cost cross subsidizing 24 / 50 24) Costs of all activities for individual products or services can be called input-unit level costs purpose level costs activity level costs output-unit level costs 25 / 50 25) 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 expected indirect cost rate budgeted direct cost rate 26 / 50 26) Costing system, in which individual activities are identified as cost object is considered as activity based costing allocation costing base costing manufactured costing 27 / 50 27) If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be $97,000 $37,000 $27,000 $87,000 28 / 50 28) Static budget amount is subtracted from flexible budget amount to calculate the cost budget variance static budget variance sales budget variance resultant budget variance 29 / 50 29) Variance, if used to alert managers before time of problem is called early warning times warning managers warning varied warning 30 / 50 30) If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be $87,000 $27,000 $97,000 $37,000 31 / 50 31) Manager who is responsible for investments of company, its costs and revenues is known as cost center profit center investment center revenue center 32 / 50 32) If number of units are 3000 and per unit price is $500, then flexible budget variable will be $4,500,000 $2,500,000 $1,500,000 $3,500,000 33 / 50 33) An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate cost variance selling price variance profit variance investment variance 34 / 50 34) Difference between flexible budget amount and corresponding static budget amount is classified as cost profit variance sales volume variance profit volume variance sales revenue variance 35 / 50 35) 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 36 / 50 36) Type of costs that cannot be traced for individual products but help in supporting an organization are classified as individual sustaining costs support tracing sustained tracing facility sustaining costs 37 / 50 37) If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be $10,000 $29,000 $11,000 $15,000 38 / 50 38) Larger number of manager subordinates and higher level manager are termed as activity subordinates broader responsibility center activity ordinates broader subordinates 39 / 50 39) If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be $87,000 $97,000 $57,000 $47,000 40 / 50 40) Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be $24,000 $71,000 $43,000 $61,000 41 / 50 41) In an activity based costing implementation, product’s diverse demand is based on process steps all of these complexity batch size 42 / 50 42) 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 43 / 50 43) Flexible budget amount is added to flexible budget variance to calculate static result secondary result primary result actual result 44 / 50 44) 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 $75,000 $55,000 $45,000 45 / 50 45) Which of following is an example of revenue center? segment department investing center sales department marketing department 46 / 50 46) Number of units are multiplied to per unit price, to calculate constant budget fixed budget variable multiple budget variable flexible budget variable 47 / 50 47) Difference between budgeted amounts and actual results is classified as variances mean average weighted average standard deviation 48 / 50 48) Product which requires large amount of resources, but incur low per unit cost is classified as expected under cost product over costing expected over cost product under costing 49 / 50 49) Budget which calculates expected revenues and expected costs, based on actual output quantity is named as flexible budget variable budget fixed budget multiplied budget 50 / 50 50) Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as instruction center activity segment responsibility center subunit 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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