Costing

[amp_mcq option1=”4000 units” option2=”5000 units” option3=”8000 units” option4=”10000 units” correct=”option3″]

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

[amp_mcq option1=”$1500 per machine hour” option2=”$250 per machine hour” option3=”$500 per machine hour” option4=”$1000 per machine hour” correct=”option1″]

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

[amp_mcq option1=”maximum stock level is maintained” option2=”minimum stock level is maintained” option3=”re-order level is maintained” option4=”average stock level is maintained” correct=”option3″]

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

[amp_mcq option1=”1800 units” option2=”1500 units” option3=”1300 units” option4=”1500 units” correct=”option2″]

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

[amp_mcq option1=”summarize total costs” option2=”compute cost for each equivalent unit” option3=”summarize flow of output” option4=”compute output in units” correct=”option2″]

Detailed SolutionForth step in process costing system is to

[amp_mcq option1=”under applied indirect cost” option2=”under absorbed indirect cost” option3=”absorbed indirect cost” option4=”both a and b” correct=”option1″]

Detailed SolutionAn under allocated indirect cost is also called

[amp_mcq option1=”Total cost” option2=”Estimated cost” option3=”Unfinished cost” option4=”Standard cost” correct=”option2″]

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

[amp_mcq option1=”activity level costs” option2=”input level costs” option3=”batch level costs” option4=”output level costs” correct=”option3″]

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

[amp_mcq option1=”standard job” option2=”non-standardized job” option3=”Both A and B” option4=”None of these” correct=”option1″]

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

[amp_mcq option1=”cost driver and cost” option2=”cost object and cost” option3=”heterogeneous cost” option4=”homogenous cost” correct=”option2″]

Detailed SolutionIn adjustment issues and data collection, inflation affects the