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MCQs

Total Questions : 163 | Page 2 of 17 pages
Question 11. An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as
  1.    unadjusted allocation rate approach
  2.    adjusted budget rate approach
  3.    unadjusted budget rate approach
  4.    adjusted allocation rate approach
 Discuss Question
Answer: Option D. -> adjusted allocation rate approach
Answer: (d).adjusted allocation rate approach
Question 12. The process of assigning the direct or indirect cost to any cost object is known as
  1.    cost assignment
  2.    cost expectation
  3.    event assignment
  4.    probability assignment
 Discuss Question
Answer: Option A. -> cost assignment
Answer: (a).cost assignment
Question 13. If the budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then, total direct labor cost would be
  1.    $4,730,000
  2.    $3,730,000
  3.    $2,730,000
  4.    $1,730,000
 Discuss Question
Answer: Option C. -> $2,730,000
Answer: (c).$2,730,000
Question 14. An average unit cost, applicable to each similar produced unit is classified as
  1.    per unit cost
  2.    per post cost
  3.    per price cost
  4.    application cost
 Discuss Question
Answer: Option A. -> per unit cost
Answer: (a).per unit cost
Question 15. If an overhead cost of operating a machine is $500000 for 1000 hours, then the cost allocation rate will be
  1.    $1500 per machine hour
  2.    $250 per machine hour
  3.    $500 per machine hour
  4.    $1000 per machine hour
 Discuss Question
Answer: Option C. -> $500 per machine hour
Answer: (c).$500 per machine hour
Question 16. If the budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then the budgeted indirect cost rate would be
  1.    69.72%
  2.    79.72%
  3.    99.75%
  4.    89.72%
 Discuss Question
Answer: Option D. -> 89.72%
Answer: (d).89.72%
Question 17. The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate
  1.    expected indirect cost rate
  2.    expected direct cost rate
  3.    budgeted indirect cost rate
  4.    budgeted direct cost rate
 Discuss Question
Answer: Option C. -> budgeted indirect cost rate
Answer: (c).budgeted indirect cost rate
Question 18. The situation in which the cost object has any job, customer or product is known as
  1.    cost application base
  2.    sale application base
  3.    price application base
  4.    direct application base
 Discuss Question
Answer: Option A. -> cost application base
Answer: (a).cost application base
Question 19. Total cost of producing similar products divided by number of units produced is a technique known as
  1.    sale costing system
  2.    job costing system
  3.    price costing system
  4.    process costing system
 Discuss Question
Answer: Option D. -> process costing system
Answer: (d).process costing system
Question 20. In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate
  1.    budget overhead applied
  2.    manufacturing overhead applied
  3.    labor overhead applied
  4.    none of above
 Discuss Question
Answer: Option B. -> manufacturing overhead applied
Answer: (b).manufacturing overhead applied

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