Cost Allocation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Allocation, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Cost Allocation MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Cost Allocation mcq questions that explore various aspects of Cost Allocation problems. Each MCQ is crafted to challenge your understanding of Cost Allocation principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Cost Allocation MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Cost Allocation. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Cost Allocation knowledge to the test? Let's get started with our carefully curated MCQs!

Cost Allocation MCQs | Page 1 of 6

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Q1.
The difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as

a.

sales mix variance

b.

sales volume variance

c.

flexible budget variance

d.

static budget variance

Discuss
Answer: (c).flexible budget variance
Q2.
In corporate costs, the costs incur for employee recruitment, development and training are classified as

a.

discretionary costs

b.

human resource management costs

c.

corporate administration costs

d.

treasury costs

Discuss
Answer: (b).human resource management costs
Q3.
In customer cost hierarchy, the cost of activities related to specific channel of distribution is classified as

a.

discretionary channel costs

b.

corporate-sustaining costs

c.

distribution-channel costs

d.

engineered resource costs

Discuss
Answer: (c).distribution-channel costs
Q4.
If the static budget amount is $6200 and the flexible budget amount is $4500, then the sales volume variance will be

a.

$6,200

b.

$1,700

c.

$17,000

d.

$4,500

Discuss
Answer: (b).$1,700
Q5.
The difference between corresponding static budget and flexible budget amount is called

a.

sales volume variance

b.

sales mix variance

c.

sales quantity variance

d.

market share variance

Discuss
Answer: (a).sales volume variance
Q6.
The difference between budgeted contribution margin for actual sales mix and budgeted sales mix is called

a.

sales quantity variance

b.

cost mix variance

c.

volume mix variance

d.

sales mix variance

Discuss
Answer: (d).sales mix variance
Q7.
The executive salaries, rent and other general administration cost in corporate costs are classified under

a.

human resource management costs

b.

corporate administration costs

c.

treasury costs

d.

discretionary costs

Discuss
Answer: (b).corporate administration costs
Q8.
If the sales volume variance is $8500 and the static budget amount is $2000, then the flexible budget amount would be

a.

$6,500

b.

$6,600

c.

$6,700

d.

$6,800

Discuss
Answer: (a).$6,500
Q9.
The difference between static budget amount and the flexible budget amount is named as

a.

sales mix variance

b.

sales volume variance

c.

flexible budget variance

d.

static budget variance

Discuss
Answer: (b).sales volume variance
Q10.
The corporate sustaining costs and distribution channel costs are also classified as

a.

indirect costs

b.

variable costs

c.

fixed costs

d.

direct costs

Discuss
Answer: (c).fixed costs
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