Costing MCQs

Question 1

A group of individual indirect cost item is defined as

Accepted Answer

cost pool

Answer

direct pool

Answer

indirect pool

Answer

item pool

Question 2

Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate

Accepted Answer

actual manufacturing overhead rate

Answer

manufacturing overhead costs

Answer

overhead rate

Answer

direct rate

Question 3

An approach which yields benefits of normal costing and actual manufacturing overhead is classified as

Accepted Answer

adjusted allocation rate approach

Answer

unadjusted allocation rate approach

Answer

adjusted budget rate approach

Answer

unadjusted budget rate approach

Question 4

Process of assigning direct or indirect cost to any cost object is known as

Accepted Answer

cost assignment

Answer

cost expectation

Answer

event assignment

Answer

probability assignment

Question 5

An average unit cost, applicable to each similar produced units is classified as

Accepted Answer

per unit cost

Answer

per post cost

Answer

per price cost

Answer

application cost

Question 6

If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be

Accepted Answer

$2,730,000

Answer

$4,730,000

Answer

$3,730,000

Answer

$1,730,000

Question 7

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

Accepted Answer

$500 per machine hour

Answer

$1500 per machine hour

Answer

$250 per machine hour

Answer

$1000 per machine hour

Question 8

Single or multiple units of distinct services or products are classified as

Accepted Answer

job

Answer

cost

Answer

post

Answer

price

Question 9

A document which consists information about labour time usage, for specific job in a specific department, is known as

Accepted Answer

labour time record

Answer

selling time record

Answer

buying time record

Answer

direct time record