Costing Methods MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Costing Methods, 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 Costing Methods 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 Costing Methods mcq questions that explore various aspects of Costing Methods problems. Each MCQ is crafted to challenge your understanding of Costing Methods 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 Costing Methods 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 Costing Methods. 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 Costing Methods knowledge to the test? Let's get started with our carefully curated MCQs!

Costing Methods MCQs | Page 11 of 17

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Q101.
If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be

a.

$78,000

b.

−$78000

c.

−$8000

d.

$8,000

Discuss
Answer: (c).−$8000
Q102.
If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labor hours, then the overhead rate will be

a.

$60

b.

$90

c.

$80

d.

$70

Discuss
Answer: (b).$90
Q103.
The costing technique, in which the actual direct rates are multiplied to quantity of direct cost inputs is classified as

a.

priced costing

b.

actual costing

c.

direct costing

d.

indirect costing

Discuss
Answer: (b).actual costing
Q104.
In normal costing, the manufacturing overhead allocated is also called

a.

manufacturing overhead applied

b.

labor overhead applied

c.

cost overhead applied

d.

budget overhead applied

Discuss
Answer: (a).manufacturing overhead applied
Q105.
If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labor hours, then the overhead rate would be

a.

109.87

b.

$107.78

c.

$106.56

d.

$104.34

Discuss
Answer: (b).$107.78
Q106.
An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called

a.

unadjusted budget rate approach

b.

adjusted allocation rate approach

c.

unadjusted allocation rate approach

d.

adjusted budget rate approach

Discuss
Answer: (b).adjusted allocation rate approach
Q107.
If the budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then the budgeted indirect cost rate will be

a.

67.30%

b.

87.31%

c.

55.50%

d.

45.50%

Discuss
Answer: (b).87.31%
Q108.
The procedure of assigning the direct cost to any cost abject is classified as

a.

sales allocation

b.

cost tracing

c.

cost allocation

d.

sales tracing

Discuss
Answer: (c).cost allocation
Q109.
If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be

a.

$48,000

b.

−$2000

c.

$2,000

d.

−$48000

Discuss
Answer: (c).$2,000
Q110.
In an accounting system, the document which supports journal entries is classified as

a.

cost document

b.

priced document

c.

source document

d.

direct document

Discuss
Answer: (c).source document
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