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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Cost Management and Pricing Decisions. 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 Management and Pricing Decisions knowledge to the test? Let's get started with our carefully curated MCQs!

Cost Management and Pricing Decisions MCQs | Page 14 of 15

Discover more Topics under Cost Accounting

Q131.
The second ranked product in incremental revenue allocation method is termed as

a.

primary product

b.

First incremental product

c.

Second incremental product

d.

Third incremental product

Discuss
Answer: (b).First incremental product
Q132.
The methods used to allocate costs of reciprocal support departments include

a.

direct method

b.

step down

c.

reciprocal method

d.

all of above

Discuss
Answer: (d).all of above
Q133.
The method which allocates the cost of support department to only operating departments is called

a.

indirect method

b.

direct method

c.

step down method

d.

reciprocal method

Discuss
Answer: (b).direct method
Q134.
The process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as

a.

revenue allocation

b.

revenue object

c.

revenue increment

d.

reciprocal revenue

Discuss
Answer: (a).revenue allocation
Q135.
Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be

a.

$2,078,000

b.

$3,078,000

c.

$2,065,000

d.

$3,065,000

Discuss
Answer: (c).$2,065,000
Q136.
The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as

a.

bundled products allocation method

b.

variable cost allocation method

c.

stand-alone cost allocation method

d.

incremental cost allocation method

Discuss
Answer: (c).stand-alone cost allocation method
Q137.
The cost allocation base used by an operating manager is classified as

a.

machine hours

b.

flexible hours

c.

variable hours

d.

fixed hours

Discuss
Answer: (a).machine hours
Q138.
The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as

a.

overhead flexible budget variance

b.

overhead fixed budget variance

c.

overhead flexible cost variance

d.

overhead flexible price variance

Discuss
Answer: (a).overhead flexible budget variance
Q139.
The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as

a.

constant costing

b.

standard costing

c.

unit costing

d.

batch costing

Discuss
Answer: (b).standard costing
Q140.
An energy, machine maintenance, indirect materials and engineering support are considered as

a.

variable overhead cost

b.

fixed overhead cost

c.

fixed batch cost

d.

variable batch cost

Discuss
Answer: (a).variable overhead cost
Page 14 of 15