Costing MCQs

Question 1

Approaches used to allocate joint costs include

Accepted Answer

all of above

Answer

sales value at split off method

Answer

net realizable value method

Answer

constant gross margin percentage NRV method

Question 2

Net realizable value is added into separate costs to calculate

Accepted Answer

final sales

Answer

split off costs

Answer

final cost of direct labour

Answer

final costs

Question 3

Gross margin percentage in constant gross-margin percentage NRV method is based on

Accepted Answer

total production

Answer

total labour costs

Answer

total revenues

Answer

total costs

Question 4

Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute

Accepted Answer

allocated joint costs

Answer

Gross margin percentage

Answer

total production cost of each product

Answer

cost of split off point

Question 5

An expected future cost which diverges in unconventional course of action is known as

Accepted Answer

relevant cost

Answer

partial cost

Answer

total cost

Answer

irrelevant cost

Question 6

If net realizable value is $20000 and separable costs are $18000, then final sales will be

Accepted Answer

$38,000

Answer

$20,000

Answer

$18,000

Answer

$2,000

Question 7

Value of sales considers sales value at split off method is of

Accepted Answer

entire production of accounting period

Answer

entire direct material of accounting period

Answer

portion of production of accounting period

Answer

entire indirect material of accounting period

Question 8

Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called

Accepted Answer

spoilage

Answer

rework

Answer

scrap

Answer

equivalence

Question 9

In process and job costing system, normal spoilage cost is considered as

Accepted Answer

inventoriable costs

Answer

conversion costs

Answer

sunk costs

Answer

non inventoriable costs