Cost Accounting

COST ALLOCATION MCQs

Total Questions : 56

Page 1 of 6 pages
Question 1. The net realizable value is added into separate costs to calculate
  1.    split off costs
  2.    final cost of direct labor
  3.    final sales
  4.    final costs
 Discuss Question
Answer is Option C. -> final sales
Answer: (c).final sales
Question 2. An expected future cost which diverges in unconventional course of action is known as
  1.    partial cost
  2.    total cost
  3.    irrelevant cost
  4.    relevant cost
 Discuss Question
Answer is Option D. -> relevant cost
Answer: (d).relevant cost
Question 3. The third step in constant gross margin percentage NRV Method to allocate joint cost is to compute
  1.    Gross margin percentage
  2.    total production cost of each product
  3.    allocated joint costs
  4.    cost of split off point
 Discuss Question
Answer is Option C. -> allocated joint costs
Answer: (c).allocated joint costs
Question 4. The gross margin percentage in constant gross-margin percentage NRV method is based on
  1.    total labor costs
  2.    total production
  3.    total revenues
  4.    total costs
 Discuss Question
Answer is Option B. -> total production
Answer: (b).total production
Question 5. If the net realizable value is $20000 and the separable costs are $18000, then the final sales will be
  1.    $20,000
  2.    $18,000
  3.    $2,000
  4.    $38,000
 Discuss Question
Answer is Option D. -> $38,000
Answer: (d).$38,000
Question 6. The value of sales, consider sales value at split off method is of
  1.    entire direct material of accounting period
  2.    entire production of accounting period
  3.    portion of production of accounting period
  4.    entire indirect material of accounting period
 Discuss Question
Answer is Option B. -> entire production of accounting period
Answer: (b).entire production of accounting period
Question 7. In customer cost hierarchy, the costs of all activities incurred to sell group of units to end consumers are classified as
  1.    customer sustaining costs
  2.    customer output unit-level costs
  3.    customer batch-level costs
  4.    corporate sustaining costs
 Discuss Question
Answer is Option C. -> customer batch-level costs
Answer: (c).customer batch-level costs
Question 8. If the flexible budget amount is $7500 and the sales volume variance is $6500, then the static budget amount would be
  1.    $7,500
  2.    $6,500
  3.    $1,000
  4.    $10,000
 Discuss Question
Answer is Option C. -> $1,000
Answer: (c).$1,000
Question 9. The customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as
  1.    customer level indirect costs
  2.    customer level direct costs
  3.    corporate level direct costs
  4.    corporate level indirect costs
 Discuss Question
Answer is Option A. -> customer level indirect costs
Answer: (a).customer level indirect costs
Question 10. For increasing sales, the decrease in selling price, below the selling price list is known as
  1.    partial discount
  2.    corporate discount
  3.    treasury discount
  4.    price discount
 Discuss Question
Answer is Option D. -> price discount
Answer: (d).price discount