Costing

1. Balancing of all aspects of products or services and all departments in company are classified as

annual profit plan
budgeting
coordination
complex plan

Detailed SolutionBalancing of all aspects of products or services and all departments in company are classified as

2. If beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be

1200 units
990 units
1100 units
1000 units

Detailed SolutionIf beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and completed good units are 8000 then total spoilage will be

3. Relevant ordering costs are added into relevant carrying costs to calculate

relevant total costs
contribution costs
throughput costs
optimized costs

Detailed SolutionRelevant ordering costs are added into relevant carrying costs to calculate

4. Method which considers lowest and highest values of cost driver and cost within relevant range is called

low high method
constant equation
variable equation
high low method

Detailed SolutionMethod which considers lowest and highest values of cost driver and cost within relevant range is called

5. Charging output with overhead at reasonable rate is called ________.

allocation
appropriation
apportionment
absorption

Detailed SolutionCharging output with overhead at reasonable rate is called ________.

6. If budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be

67.30%
87.31%
55.50%
45.50%

Detailed SolutionIf budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be

7. Credit and collection cost is an item of:

selling overhead
office overhead
prime cost
administrative overhead

Detailed SolutionCredit and collection cost is an item of:

8. In accounting, cost which is predicted to be incurred or future cost is known as

past cost
incurred cost
actual cost
budgeted cost

Detailed SolutionIn accounting, cost which is predicted to be incurred or future cost is known as

9. A particular term for which specific revenue measurement is required is known as

revenue allocation
revenue object
revenue increment
reciprocal revenue

Detailed SolutionA particular term for which specific revenue measurement is required is known as

10. Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as

sales mix allocation method
dual-rate cost-allocation method
single rate cost allocation method
quantity variance allocation method

Detailed SolutionMethod which divides support department cost into two dimensions such as fixed and variable cost pool is classified as

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