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