Costing MCQs

Question 1

In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as

Accepted Answer

First-in, first-out method

Answer

partial inventory costing method

Answer

current period inventory method

Answer

Last-in, first-out method

Question 2

Fifth step in process costing system is to

Accepted Answer

assign total cost to completed units

Answer

allocate separable costs

Answer

allocate joint costs

Answer

compute gross margin

Question 3

Forth step in process costing system is to

Accepted Answer

compute cost for each equivalent unit

Answer

summarize total costs

Answer

summarize flow of output

Answer

compute output in units

Question 4

Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as

Accepted Answer

weighted average method

Answer

net present value method

Answer

Gross production method

Answer

None of the above

Question 5

Second step in processing costing system is to

Accepted Answer

compute output in units

Answer

summarize total costs

Answer

compute cost for each equivalent unit

Answer

summarize flow of output

Question 6

Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as

Accepted Answer

operation

Answer

conversion process

Answer

hybridization

Answer

both a and b

Question 7

If total incurred cost in a production process are $30000 and number of output units are 5000 units, then units cost will be

Accepted Answer

$6

Answer

$16

Answer

$60

Answer

$26

Question 8

If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be

Accepted Answer

$100

Answer

$10

Answer

$1,000

Answer

$1,200

Question 9

Third step in process costing system is to

Accepted Answer

summarize total costs

Answer

summarize flow of output

Answer

compute output in units

Answer

compute cost for each equivalent unit