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 9 of 17

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Q81.
If the budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be
Discuss
Answer: (b).16.67 per piece
Discuss
Answer: (d).both a and b
Q83.
In normal costing, the situation in which the allocated amount of indirect cost is greater than the incurred cost, is considered as
Discuss
Answer: (b).over allocated indirect cost
Q84.
A group of individual indirect cost item is defined as
Discuss
Answer: (b).cost pool
Q85.
The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate
Discuss
Answer: (a).actual manufacturing overhead rate
Q86.
An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as
Discuss
Answer: (d).adjusted allocation rate approach
Q87.
The process of assigning the direct or indirect cost to any cost object is known as
Discuss
Answer: (a).cost assignment
Q88.
An average unit cost, applicable to each similar produced unit is classified as
Discuss
Answer: (a).per unit cost
Q89.
If the budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then, total direct labor cost would be
Discuss
Answer: (c).$2,730,000
Q90.
If an overhead cost of operating a machine is $500000 for 1000 hours, then the cost allocation rate will be
Discuss
Answer: (c).$500 per machine hour