Costing Archives - Page 5 of 116 - MCQ and Quiz for Exams

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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