Cost Management and Pricing Decisions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Management and Pricing Decisions, 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 Management and Pricing Decisions 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 Management and Pricing Decisions mcq questions that explore various aspects of Cost Management and Pricing Decisions problems. Each MCQ is crafted to challenge your understanding of Cost Management and Pricing Decisions 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 Management and Pricing Decisions MCQs are your pathway to success in mastering this essential Cost Accounting topic.

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Cost Management and Pricing Decisions MCQs | Page 12 of 15

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Q111.
In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as

a.

First incremental user

b.

primary user

c.

secondary user

d.

second incremental user

Discuss
Answer: (d).second incremental user
Q112.
The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as

a.

bundled cost

b.

common cost

c.

stand-alone cost

d.

incremental cost

Discuss
Answer: (b).common cost
Q113.
The cost object user, who is ranked first in incremental cost allocation method is known as

a.

First incremental user

b.

primary user

c.

secondary user

d.

second incremental user

Discuss
Answer: (b).primary user
Q114.
The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as

a.

complete reciprocal costs

b.

artificial costs

c.

operating costs

d.

flexible operating costs

Discuss
Answer: (a).complete reciprocal costs
Q115.
The third ranked product in incremental revenue-allocation method is known as

a.

primary product

b.

First incremental product

c.

Second incremental product

d.

Third incremental product

Discuss
Answer: (d).Third incremental product
Q116.
In stand-alone revenue-allocation method, the type of weights available for this method are

a.

selling prices as weights

b.

unit costs as weights

c.

physical units as weights

d.

all of above

Discuss
Answer: (d).all of above
Q117.
The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as

a.

step down allocation method

b.

stand-alone revenue allocation method

c.

incremental revenue allocation method

d.

revenue mix allocation method

Discuss
Answer: (b).stand-alone revenue allocation method
Q118.
The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as

a.

sales mix allocation method

b.

dual-rate cost-allocation method

c.

single rate cost allocation method

d.

quantity variance allocation method

Discuss
Answer: (b).dual-rate cost-allocation method
Q119.
A particular term for which specific revenue measurement is required is known as

a.

revenue allocation

b.

revenue object

c.

revenue increment

d.

reciprocal revenue

Discuss
Answer: (b).revenue object
Q120.
Support department cost allocation method which makes no difference between variable and fixed costs is classified as

a.

sales mix allocation method

b.

dual-rate cost-allocation method

c.

single rate cost allocation method

d.

quantity variance allocation method

Discuss
Answer: (c).single rate cost allocation method
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