Costing

11. _____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.

Cash Budget
Capital Expenditure Budget
Sales Budget
Overhead Budget

Detailed Solution_____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.

12. If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be

109.87
$107.78
$106.56
$104.34

Detailed SolutionIf an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be

13. Budget, which predicts effect of given level of operations on a cash position is classified as

market budget
price schedule
planned schedule
cash budget

Detailed SolutionBudget, which predicts effect of given level of operations on a cash position is classified as

14. Material mix variance = standard cost of standard mix – . . . . . . . .

Actual cost of actual mix
Actual cost of standard mix
Standard cost of actual mix
Standard cost of budgeted mix

Detailed SolutionMaterial mix variance = standard cost of standard mix – . . . . . . . .

15. Under inflationary conditions a higher value of inventory is assigned under:

LIFO method
FIFO method
Weighted average method
None of the above

Detailed SolutionUnder inflationary conditions a higher value of inventory is assigned under:

16. Contribution less fixed cost is

Profit
Sales
Price
MOS

Detailed SolutionContribution less fixed cost is

17. Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

indirect method
direct method
step down method
reciprocal method

Detailed SolutionMethod, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

18. Higher and accurate budgeted profit forecast of managers lead to

high incentive bonus
low incentive bonus
influence bonus
revenue bonus

Detailed SolutionHigher and accurate budgeted profit forecast of managers lead to

19. Direct cost assignment for specific cost object is classified as

cost object line cost
cost tracing
cost object indirect cost
cost object staff cost

Detailed SolutionDirect cost assignment for specific cost object is classified as

20. Approaches to allocate costs of support department do not include

sales mix allocation method
dual-rate cost-allocation method
single rate cost allocation method
both b and c

Detailed SolutionApproaches to allocate costs of support department do not include

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