Costing Archives - Page 2 of 116 - MCQ and Quiz for Exams

11. Document, which contains information about used material sequence, detail and quantity of raw material is classified as

bill of materials

bill of sequence

bill of detail

bill of raw materials

Detailed SolutionDocument, which contains information about used material sequence, detail and quantity of raw material is classified as

12. Cost of previous department is a part of

transferred-in costs

transferred-out costs

FIFO costs

LIFO costs

Detailed SolutionCost of previous department is a part of

13. Cash from operation is equal to

net profit plus decrease in current assets

net profit plus increase in current assets

net profit minus decrease in current assets

None of the above

Detailed SolutionCash from operation is equal to

14. In an activity based costing implementation, product’s diverse demand is based on

batch size

complexity

process steps

all of above

Detailed SolutionIn an activity based costing implementation, product’s diverse demand is based on

15. “Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B?”

Rs 6562.50

Rs 12,250.00

Rs 14,437.50

Rs 25,375.00

Detailed Solution“Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B?”

16. Direct material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be

$55,000

$37,500

$95,000

$26,000

Detailed SolutionDirect material cost is $75000 and direct manufacturing labour is $20000, then prime cost would be

17. An amount of spoilage that is not natural in a specific production process is categorized as

normal scrap

normal spoilage

abnormal spoilage

weighted spoilage

Detailed SolutionAn amount of spoilage that is not natural in a specific production process is categorized as

18. 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

expected indirect cost rate

direct budget percentage

Detailed SolutionBudgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by

19. Those cost which is incurred to prevent the labour turnover __________.

management cost

replacement cost

preventive cost

compensation cost

Detailed SolutionThose cost which is incurred to prevent the labour turnover __________.

20. Cost which is related to specific cost object and cannot be economically traceable is classified as

line cost

staff cost

direct cost

indirect cost

Detailed SolutionCost which is related to specific cost object and cannot be economically traceable is classified as

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