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Costing Methods Online Exam Quiz

Important questions about Costing Methods. Costing Methods MCQ questions with answers. Costing Methods exam questions and answers for students and interviews.

An approach in which the company under-costs it's one product and over-costs at least one product is classified as

Options

A : a. service-cost across subsidizing

B : b. product-price cross subsidizing

C : c. product-cost cross subsidizing

D : d. product cross subsidizing

The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by

Options

A : a. budgeted direct cost rate

B : b. budgeted indirect cost rate

C : c. expected indirect cost rate

D : d. direct budget percentage

The costs of all the activities for individual products or services can be called

Options

A : a. purpose level costs

B : b. output-unit level costs

C : c. input-unit level costs

D : d. activity level costs

In an activity based costing implementation, the product's diverse demand is based on

Options

A : a. batch size

B : b. complexity

C : c. process steps

D : d. all of above

The broad's average use to assign the cost of revenue to cost objects will be classified as

Options

A : a. refined costing system

B : b. refined selling system

C : c. undefined costing

D : d. defined selling system

The costs of all the activities for a group of products, rather than individual product can be classified as

Options

A : a. activity level costs

B : b. input level costs

C : c. batch level costs

D : d. output level costs

The product which requires low amount of resources, but incur high per unit cost is classified as

Options

A : a. expected under cost

B : b. expected over cost

C : c. product under costing

D : d. product over costing

In activity based costing system, the description of activity can be classified as

Options

A : a. activity list

B : b. activity dictionary

C : c. active purpose

D : d. both a and b

The factors that accelerate the process of refining a costing system include

Options

A : a. increase in product diversity

B : b. increase in indirect costs

C : c. product market competitions

D : d. all of above

The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

Options

A : a. heterogeneous price pool

B : b. homogenous cost pool

C : c. heterogeneous cost pool

D : d. homogenous price pool

In the activity based costing method implementation, the indirect costs are allocated by using the

Options

A : a. no cost pool

B : b. One or two cost pools

C : c. sustained tracing

D : d. support tracing

The costing system, in which individual activities are identified as the cost object, is considered as

Options

A : a. manufactured costing

B : b. activity based costing

C : c. allocation costing

D : d. base costing

The type of costs that cannot be traced for individual products but help in supporting an organization are classified as

Options

A : a. individual sustaining costs

B : b. facility sustaining costs

C : c. sustained tracing

D : d. support tracing

In the activity based costing method implementation, an output unit level costs are classified as

Options

A : a. indirect costs

B : b. direct cost

C : c. labor cost

D : d. raw material cost

The hierarchy which is based on different types of cost allocation and drivers, to categorize cost pool activity is classified as

Options

A : a. cost hierarchy

B : b. price hierarchy

C : c. activity hierarchy

D : d. purpose hierarchy

The product which requires large amount of resources, but incur low per unit cost is classified as

Options

A : a. product under costing

B : b. product over costing

C : c. expected under cost

D : d. expected over cost

The costs of undertaken activities is to support individual products and are known as

Options

A : a. expected sustaining

B : b. input sustaining

C : c. output sustaining

D : d. product sustaining costs

Options

A : a. \$596,300

B : b. \$485,300

C : c. \$496,250

D : d. \$486,250

If an initial investment is \$765000, the payback period is 4.5 years, then increase in future cash flow will be

Options

A : a. \$5,645,000

B : b. \$6,442,500

C : c. \$3,442,500

D : d. \$5,442,500

The categories of cash flows include

Options

A : a. net initial investment

B : b. cash flow from operations after paying taxes

C : c. cash flow from terminal disposal after paying taxes

D : d. all of above