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MCQs

Total Questions : 146 | Page 7 of 15 pages
Question 61. The costs that are planned in future and has not been incurred are known as
  1.    designed-in costs
  2.    locked-in costs
  3.    value added cost
  4.    both a and b
 Discuss Question
Answer: Option A. -> designed-in costs
Answer: (a).designed-in costs
Question 62. A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D; to final customer support, is called
  1.    product life cycle
  2.    life cycle budgeting
  3.    life cycle costing
  4.    target costing
 Discuss Question
Answer: Option C. -> life cycle costing
Answer: (c).life cycle costing
Question 63. If the cost base is $350 and the markup component is 11% then prospective selling price will be
  1.    388.5
  2.    350
  3.    362
  4.    368.5
 Discuss Question
Answer: Option A. -> 388.5
Answer: (a).388.5
Question 64. The target annual operating income is divided with invested capital to calculate
  1.    target rate of return on investment
  2.    operating income per unit
  3.    operating cost per unit
  4.    cost of goods sold
 Discuss Question
Answer: Option A. -> target rate of return on investment
Answer: (a).target rate of return on investment
Question 65. An estimated price, which is expected to be paid by customers for particular market offering is classified as
  1.    target price
  2.    target cost
  3.    outsource price
  4.    off shore price
 Discuss Question
Answer: Option A. -> target price
Answer: (a).target price
Question 66. In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as
  1.    First incremental user
  2.    primary user
  3.    secondary user
  4.    second incremental user
 Discuss Question
Answer: Option D. -> second incremental user
Answer: (d).second incremental user
Question 67. The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as
  1.    bundled cost
  2.    common cost
  3.    stand-alone cost
  4.    incremental cost
 Discuss Question
Answer: Option B. -> common cost
Answer: (b).common cost
Question 68. The third ranked product in incremental revenue-allocation method is known as
  1.    primary product
  2.    First incremental product
  3.    Second incremental product
  4.    Third incremental product
 Discuss Question
Answer: Option D. -> Third incremental product
Answer: (d).Third incremental product
Question 69. The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as
  1.    complete reciprocal costs
  2.    artificial costs
  3.    operating costs
  4.    flexible operating costs
 Discuss Question
Answer: Option A. -> complete reciprocal costs
Answer: (a).complete reciprocal costs
Question 70. The cost object user, who is ranked first in incremental cost allocation method is known as
  1.    First incremental user
  2.    primary user
  3.    secondary user
  4.    second incremental user
 Discuss Question
Answer: Option B. -> primary user
Answer: (b).primary user

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