Costing

41. If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be

4000 units
5000 units
8000 units
10000 units

Detailed SolutionIf budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be

42. If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be

$1500 per machine hour
$250 per machine hour
$500 per machine hour
$1000 per machine hour

Detailed SolutionIf an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be

43. In order to avoid the stoppage of production due to shortage of material _______.

maximum stock level is maintained
minimum stock level is maintained
re-order level is maintained
average stock level is maintained

Detailed SolutionIn order to avoid the stoppage of production due to shortage of material _______.

44. If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are

1800 units
1500 units
1300 units
1500 units

Detailed SolutionIf beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are

45. Forth step in process costing system is to

summarize total costs
compute cost for each equivalent unit
summarize flow of output
compute output in units

Detailed SolutionForth step in process costing system is to

46. An under allocated indirect cost is also called

under applied indirect cost
under absorbed indirect cost
absorbed indirect cost
both a and b

Detailed SolutionAn under allocated indirect cost is also called

47. Cost which are recorded in the books after expenditure is incurred but before profit is realized

Total cost
Estimated cost
Unfinished cost
Standard cost

Detailed SolutionCost which are recorded in the books after expenditure is incurred but before profit is realized

48. Costs of all activities for a group of products, rather than individual product can be classified as

activity level costs
input level costs
batch level costs
output level costs

Detailed SolutionCosts of all activities for a group of products, rather than individual product can be classified as

49. A bill of material is prepared in case of a . . . . . . . . job.

standard job
non-standardized job
Both A and B
None of these

Detailed SolutionA bill of material is prepared in case of a . . . . . . . . job.

50. In adjustment issues and data collection, inflation affects the

cost driver and cost
cost object and cost
heterogeneous cost
homogenous cost

Detailed SolutionIn adjustment issues and data collection, inflation affects the

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