Tuesday, 12 November 2019

The most suitable costing system where the product differ in type of materials used


The type of spoilage that should not affect the recorded cost of inventories is

Normal spoilage                                                           
Seasonal spoilage
ab normal spoilage                                       
Standard spoilage

The budget which commonly takes the form of budgeted profit and loss and balance sheet

Cash budget                                                                  
Master budget                
Flexible budget                                              
Fixed budget

According to which of the methods of pricing, issues are close to current economic values
FIFO                                                                                 
Average cost method     
Specific identification                                    
LIFO

The decision model to calculate optimal quantity of inventory to be ordered is called

Efficient order quantity                               
Rational order quantity 
Optimized order quantity                             
Economic order quantity

Which of the following is not a relevant cost

Period cost                                                                    
Sunk cost
 product cost                                                 
Opportunity cost

When the FOH control account has a closing debt balance factory overhead is

Over-absorbed                                                              
Fixed                    
Variable                                                         
Under-absorbed

If there is no change in fixed cost at different levels of output

Marginal cost > Differential cost                             
Marginal cost < Differential cost
Marginal cost and Differential cost are same          
None of the above

Which of the following incentive method of wage payment is most suitable where quality and accuracy of work  is of primary importance

Time rate system                                                        
 Piece rate system
 Halsey premium system                               
Differential piece work system

Costs that are always relevant in decision making are

Fixed costs                                                                     
Sunk costs          
Variable costs                                                
Avoidable costs

A detailed plan showing how cash resources will be acquired and used over a specific time period

Labor budget                                                                 
Cash budget
Master budget                                                           
Continuous budget

When price fluctuate widely the method that will smooth out the effect of fluctuations is

LIFO                
FIFO    
Weighted average                
Simple average

Any cost that differs between alternatives in a decision making situation

Product cost                                                                  
Opportunity cost
Differential cost                                            
Process costing

Which of the following form must be filled out when inventory is to be removed from the materials inventory to be placed into production

Material requisition form                                         
Purchase order
Receiving report                                            
Purchasing requisition

The standard costing can be used along with

Marginal costing                                                          
Job and process costing
Absorption costing                                         
All of above

A cost which increases or decreases per unit when volume of output decreases or increases is

Direct cost
Variable cost
Fixed cost
Indirect cost


The type of accounting which reports financial and non-financial data about the cost of material and acquiring of resources is classified as:
Cost accounting                                            
 Material accounting             
Business accounting                                      
Supplies accounting

Total costs are comprised of

Variable cost plus fixed cost                          
Variable cost plus fixed plus semi variable cost
Fixed cost plus semi variable cost                 
Variable cost plus semi variable cost

The standard cost variance representing the difference between actual FOH and budgeted FOH based on actual hours worked is the

Efficiency variance                           
Spending variance                             
Volume variance                                            
Quantity variance

The labor which is related to the manufacturing of the product is classified as
direct manufacturing labor costs
indirect manufacturing labor costs
work in process cost
finished costs
The direct material costs are added into direct manufacturing costs to calculate
discuss costs
prime costs
resale cost
merchandise costs

The direct manufacturing labor costs is added to manufacturing overhead cost to calculate
transaction costs
conversion costs
resale costs
merchandise costs

Which method gives the lowest cost of materials and high cost of ending inventory and highest gross profit?

LIFO                                                                
Average cost method
Specific identification                                    
FIFO

The decision model to calculate optimal quantity of inventory to be ordered is called

Efficient order quantity                                 
Rational order quantity         
Optimized order quantity                             
Economic order quantity

The most suitable costing system where the product differ in type of materials used

Process costing                                              
Job costing
Activity Base costing                                      
Absorption costing Answer B
In cost terms, the direct manufacturing labor cost is included in
manufacturing costs
prime costs
conversion costs
Both B and C Answer D

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