Questions and answers for exam Preparation

MCQs

Total Questions : 56 | Page 2 of 6 pages

Question 11. If an actual result is $5500 and corresponding amount of flexible budget on the basis of actual level of output is $3500, then flexible budget variance will be

$2,500
$5,500
$3,500
$2,000

Discuss Question

Answer: Option D. -> $2,000
Answer: (d).$2,000

Question 12. The division of all the costs related to customers on the basis of different cost allocation bases or cost drivers are called

customer cost hierarchy
customer profitability hierarchy
treasury costing hierarchy
partial costing hierarchy

Discuss Question

Answer: Option A. -> customer cost hierarchy
Answer: (a).customer cost hierarchy

Question 13. In customer cost hierarchy, the costs of all the incurred activities to sell a unit of product are classified as

customer sustaining costs
customer output unit-level costs
customer batch-level costs
corporate sustaining costs

Discuss Question

Answer: Option B. -> customer output unit-level costs
Answer: (b).customer output unit-level costs

Question 14. Which of the following do not include among major categories of corporate costs?

human resource management costs
corporate administration costs
treasury costs
discretionary costs

Discuss Question

Answer: Option D. -> discretionary costs
Answer: (d).discretionary costs

Question 15. If an actual result in static budget is $2500 and the corresponding budgeted amount is $2200, then the static budget variance will be

$3,000
$300
$4,700
$4,500

Discuss Question

Answer: Option B. -> $300
Answer: (b).$300

Question 16. In customer cost hierarchy, the costs of those activities that cannot be traced to distribution channels or individual customers are called

discretionary channel costs
corporate-sustaining costs
distribution-channel costs
engineered resource costs

Discuss Question

Answer: Option B. -> corporate-sustaining costs
Answer: (b).corporate-sustaining costs

Question 17. In customer cost hierarchy, the costs of individual customer support activities are classified as

discretionary channel costs
corporate-sustaining costs
distribution-channel costs
customer-sustaining costs

Discuss Question

Answer: Option D. -> customer-sustaining costs
Answer: (d).customer-sustaining costs

Question 18. A joint cost allocation method is based on relative value of total sales, at the point of split off is classified as

sales value at split off method
joint costs at split off point method
joint products value at split off method
main product cost at split off method

Discuss Question

Answer: Option A. -> sales value at split off method
Answer: (a).sales value at split off method

Question 19. The first step in constant gross margin percentage, Net realizable value (NRV) method is to allocate joint, to compute

Gross margin percentage
total production cost of each product
allocated joint costs
cost of split off point

Discuss Question

Answer: Option A. -> Gross margin percentage
Answer: (a).Gross margin percentage

Question 20. In a joint process of production, the product which yields low volume of sales as compared to total sales of other products, specify as