{"id":59351,"date":"2024-04-16T01:35:40","date_gmt":"2024-04-16T01:35:40","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59351"},"modified":"2024-04-16T01:35:40","modified_gmt":"2024-04-16T01:35:40","slug":"which-of-the-following-is-not-a-method-of-cost-absorption","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/","title":{"rendered":"Which of the following is not a method of cost absorption?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Percentage of direct material cost&#8221; option2=&#8221;Machine hour rate&#8221; option3=&#8221;Labour hour rate&#8221; option4=&#8221;Repeated distribution method&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is D. Repeated distribution method.<\/p>\n<p>Cost absorption is the process of allocating production costs to units produced. This is done in order to determine the cost of each unit and to assign costs to inventory and cost of goods sold.<\/p>\n<p>There are a number of different methods of cost absorption, including:<\/p>\n<ul>\n<li>Percentage of direct material cost: This method allocates production costs based on the percentage of direct material cost to total production cost.<\/li>\n<li>Machine hour rate: This method allocates production costs based on the number of machine hours used in production.<\/li>\n<li>Labour hour rate: This method allocates production costs based on the number of labour hours used in production.<\/li>\n<li>Direct costing: This method allocates only direct costs to units produced.<\/li>\n<li>Absorption costing: This method allocates both direct and indirect costs to units produced.<\/li>\n<\/ul>\n<p>The repeated distribution method is not a recognized method of cost absorption. It is a method that is sometimes used in practice, but it is not a generally accepted accounting principle.<\/p>\n<p>The repeated distribution method is based on the assumption that all costs are variable costs. This is not a realistic assumption, as many costs are fixed costs. As a result, the repeated distribution method can lead to inaccurate cost allocations.<\/p>\n<p>In conclusion, the correct answer is D. Repeated distribution method.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Percentage of direct material cost&#8221; option2=&#8221;Machine hour rate&#8221; option3=&#8221;Labour hour rate&#8221; option4=&#8221;Repeated distribution method&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-59351","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following is not a method of cost absorption?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following is not a method of cost absorption?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Percentage of direct material cost&#8221; option2=&#8221;Machine hour rate&#8221; option3=&#8221;Labour hour rate&#8221; option4=&#8221;Repeated distribution method&#8221; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:35:40+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following is not a method of cost absorption?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following is not a method of cost absorption?","og_description":"[amp_mcq option1=&#8221;Percentage of direct material cost&#8221; option2=&#8221;Machine hour rate&#8221; option3=&#8221;Labour hour rate&#8221; option4=&#8221;Repeated distribution method&#8221; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:35:40+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/","name":"Which of the following is not a method of cost absorption?","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:35:40+00:00","dateModified":"2024-04-16T01:35:40+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-method-of-cost-absorption\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Costing","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/costing\/"},{"@type":"ListItem","position":3,"name":"Which of the following is not a method of cost absorption?"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=59351"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59351\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=59351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=59351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=59351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}