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 4 of 6

Q31.
The difference between final sales value and separable costs is equal to
Discuss
Answer: (b).net realizable value
Q32.
As compared to sale value of main products, the by-products have
Discuss
Answer: (a).low sale value
Q33.
If the final sales are $50000 and the separable costs are $35000, then the net realizable value will be
Discuss
Answer: (a).$15,000
Q34.
The joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as
Discuss
Answer: (c).constant gross margin percentage NRV method
Q35.
The manufacturing, distribution and marketing costs incur after split off point is classified under
Discuss
Answer: (a).separable costs
Q36.
The method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as
Discuss
Answer: (c).physical-measure method
Q37.
If value of final sales is $48000 and the net realizable value is $35000, then the value of sales costs would be
Discuss
Answer: (b).$13,000
Q38.
The second step, in constant gross margin percentage Net Realizable Value (NRV) method, to allocate joint cost is to compute
Discuss
Answer: (d).total production cost of each product
Q39.
In a joint process of production, a product which yields high volume of sales as compared to total sales volume of other products is known as
Discuss
Answer: (c).main product
Q40.
An expected future revenue, which diverges in unconventional course of action is classified as
Discuss
Answer: (c).relevant revenues
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