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 12 of 17

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Q111.
If the budgeted indirect cost arte is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be
Discuss
Answer: (d).$95,450
Q112.
If the budgeted annual manufacturing indirect cost is $2250000 and the cost allocation base is 2800 labor hour, then budgeted manufacturing overhead rate will be
Discuss
Answer: (a).$803.571 per labor hour
Q113.
In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as
Discuss
Answer: (a).over allocated budget
Q114.
The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as
Discuss
Answer: (a).proration approach
Q115.
If the budgeted indirect cost is $225 and the budgeted cost allocation base is $750 per hour, then the annual indirect cost (budgeted) would be
Discuss
Answer: (a).$168,750
Q116.
If the budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then the budgeted indirect cost rate would be
Discuss
Answer: (d).89.72%
Q117.
Total cost of producing similar products divided by number of units produced is a technique known as
Discuss
Answer: (d).process costing system
Q118.
In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate
Discuss
Answer: (b).manufacturing overhead applied
Q119.
The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate
Discuss
Answer: (c).budgeted indirect cost rate
Q120.
The situation in which the cost object has any job, customer or product is known as
Discuss
Answer: (a).cost application base