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

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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