Junior Accountant Job Related Past Papers PDF
SET-1
Q. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is __________?
Answer: Depreciation
Q. If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be __________?
Answer: 1300 units
Q. In support of business transaction, any written evidence is called __________?
Answer: Voucher
Q. The concession received on the price of defective goods is called __________?
Answer: Allowance
Q. Cash brought by the owner to start business is called __________?
Answer: Capital
Q. Reduction in price is called __________?
Answer: Discount
Q. Sales return is also known as __________?
Answer: Return Inward
Q. When goods, in which business deals are sold, it is called __________?
Answer: Sales
Q. The excess of current assets over current liabilities is called __________?
Answer: Working Capital
Q. Goods returned to supplier are known as __________?
Answer: Purchase Return
Q. Obligations of the business are known as __________?
Answer: Liabilities
Q. The amount invested by the proprietor to start the business is called __________?
Answer: Capital
Q. Discount received is a/an __________?
Answer: Revenue
Q. Double entry means __________?
Answer: Entry for two aspects of the transaction
Q. The person to whom goods are sold on credit is called __________?
Answer: Debtor
Q. Modern system of book keeping is called __________?
Answer: Double Entry System
Q. Goods returned by the customer are termed as __________?
Answer: Sales Return
Q. The maintenance of accounts in a systematic way is called __________?
Answer: Book Keeping
Q. An art of recording, classifying and summarizing accounts in a systematic way is called __________?
Answer: Accounting
Q. A systematic way to maintain the books of accounts is called __________?
Answer: Book Keeping
Q. The revenues and expenses of a company are displayed in which statement?
Answer: Income Statement
Q. LIFO stands for __________?
Answer: Last In, First Out
Q. For the business, capital is __________?
Answer: Liability
Q. Cash discount is provided on __________?
Answer: Prompt Payment
Q. If the units of normal spoilage are 150 and the total good units manufactured are 1500, then the normal spoilage rate would be __________?
Answer: 10%
Q. An amount of spoilage that is natural in any particular production process is classified as __________?
Answer: Normal Spoilage
Q. The residual material which results from manufacturing products is called __________?
Answer: Scrap
Q. The normal spoilage is subtracted from total spoilage to calculate __________?
Answer: Abnormal Spoilage
Q. If the transferred out total cost is $1,850,000 and the number of good units produced is 7250, then the cost per good unit transferred out and completed can be __________?
Answer: 255.1724
Q. The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as __________?
Answer: Spoilage
Q. The sum of beginning work in process inventory units and started units is subtracted from the sum of ending work in process inventory units and transferred out units of goods to calculate __________?
Answer: Total Spoilage
Q. The units of normal spoilage are divided by total completed units rather than total actual produced units to calculate __________?
Answer: Normal Spoilage Rates
Q. The types of spoilage include __________?
Answer: Both Normal Spoilage and Abnormal Spoilage
Q. The partial or completed units of manufactured goods that do not meet customer specifications and get sold at reduced price or discarded are called __________?
Answer: Spoilage
Q. The type of spoilage which is considered controllable and can be avoided is called __________?
Answer: Abnormal Spoilage
Q. Total transferred-out cost plus normal spoilage is divided by number of good units produced to calculate __________?
Answer: Cost per Good Units Transferred Out
Q. The cost of abnormal spoilage is not treated as __________?
Answer: Inventoriable Costs
Q. The costing which explains how and when scrap affects the operating income of a company is classified as __________?
Answer: Inventory Costing
Q. The aspects of accounting for scrap include __________?
Answer: Both A and C
Q. An example of rework is __________?
Answer: Detection of Defective Pieces Before Shipment
Q. The stage in production process where the manufactured goods are checked whether the units are acceptable or not is classified as __________?
Answer: Inspection Point
Q. An amount of spoilage that is not natural in a specific production process is categorized as __________?
Answer: Abnormal Spoilage
Q. Which one of the following is an example of spoilage?
Answer: Defective Aluminum Cans Recycled by Manufacturer
Q. In process and job costing system, the normal spoilage cost is considered as __________?
Answer: Inventoriable Costs
Q. Total cost related to work in process inventory divided by total units of work done is used to calculate __________?
Answer: Weighted Average Cost
Q. The costing system which classifies cost into cost categories when an expense is incurred in the process is called __________?
Answer: Process Costing System
Q. The third step in process costing system is to __________?
Answer: Summarize Total Costs
Q. If the cost incurred for work in process inventory is $350,000 and total equivalent units completed till date are 3500, then weighted average cost will be __________?
Answer: $100
Q. If the total incurred cost in a production process is $30,000 and the number of output units is 5000 units, then the unit cost will be __________?
Answer: $6
Q. The second step in process costing system is to __________?
Answer: Compute Output in Units
Q. The costing method which calculates per equivalent unit cost of all the production-related work done till calculated date is termed as __________?
Answer: Weighted Average Method
Q. The fourth step in process costing system is to __________?
Answer: Compute Cost for Each Equivalent Unit
Q. The fifth step in process costing system is to __________?
Answer: Assign Total Cost to Completed Units
Q. The costs that are incurred in the last department where the product has been processed and will be carried to the next department for further processing are called __________?
Answer: Transferred-in Costs
Q. If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be __________?
Answer: 2300 Units
Q. If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then completed equivalent units in current period are __________?
Answer: 1300 Units
Q. The cost of previous department is a part of __________?
Answer: Transferred-in Costs
Q. The total costs incurred in a production process divided by total number of output units is used to calculate the __________?
Answer: Unit Costs
Q. A unit cost calculated in a costing system by assigning total costs incurred to many similar units is categorized as __________?
Answer: Process Costing System
Q. The first step in process costing system is to __________?
Answer: Summarize Flow of Output
Q. In process costing method, when the work done in current accounting period and beginning inventory before current accounting period is classified as __________?
Answer: First-In, First-Out Method
Q. The standardized technique that is performed repetitively on different kinds of materials to convert them into finished products is known as __________?
Answer: Operation
Q. The hybrid costing system which is applied to batches of similar products but are not identical is classified as __________?
Answer: Operation Costing System
Q. The costing system which is a combination of process costing and job costing system is classified as __________?
Answer: Hybrid Costing System
SET-2
Q. The total available assets are subtracted from idle assets to calculate __________?
Answer: Total Assets Employed
Q. The formal information systems used in organizations to focus company learning and attention on the most important strategic issues are known as __________?
Answer: Interactive Control System
Q. The rupee amount for required return on investment is subtracted from income to calculate __________?
Answer: Residual Income
Q. An Economic Value Added method is a specific type of method to calculate __________?
Answer: Residual Income
Q. The after-tax average cost of the funds used by a company in the long run is equal to __________?
Answer: Weighted Average Cost of Capital
Q. A desire of an individual to give good performance for self-satisfaction is known as __________?
Answer: Intrinsic Motivation
Q. In an accounting measurement, income and investment are divided to calculate __________?
Answer: Return on Investment
Q. If the working capital is $265,000 and the current liabilities are $378,000, then the current assets can be __________?
Answer: $643,000
Q. The sum of all the resources used to generate income is classified as __________?
Answer: Investment
Q. The difference of current assets and the working capital is equal to __________?
Answer: Current Liabilities
Q. If the current assets are $250,000 and the current liabilities are $135,500, then the working capital would be __________?
Answer: $114,500
Q. Current assets are subtracted from current liabilities to calculate __________?
Answer: Working Capital
Q. The system in an organization that articulates the purpose, mission and core values of a company is classified as __________?
Answer: Belief System
Q. If the operating income is $5,650,000 and the revenue is $68,558,000, then the return on sales will be __________?
Answer: 8.24%
Q. Operating income divided by revenues is used to calculate __________?
Answer: Return on Sales
Q. If the required rate of return is 13%, operating income is $375,000 and total investment is $2,650,000, then the residual income would be __________?
Answer: $30,500
Q. The return on investment is also known as __________?
Answer: Both ROI and Rate of Return
Q. The system in an organization which defines behavior standards and code of conduct is known as __________?
Answer: Boundary System
Q. The sum of working capital and current liabilities is equal to __________?
Answer: Current Assets
Q. Return on sales multiplied by investment turnover is used to calculate __________?
Answer: Return on Investment
Q. The measures that analyze the performance of a company such as residual income, economic value added and customer satisfaction are collectively called __________?
Answer: Diagnostic Control Systems
Q. If after-tax operating income is $185,000, weighted average cost of capital is 11%, total assets are $485,000 and total liabilities are $367,000, then economic value added would be __________?
Answer: $172,020
Q. The costs that are not incorporated in accounting records but are recognized in different situations are classified as __________?
Answer: Imputed Costs
Q. If the current assets are $856,000 and the working capital is $654,500, then the current liabilities will be __________?
Answer: $201,500
Q. The formula to calculate return on investment according to profitability analysis in DuPont method is __________?
Answer: Return on Sales × Investment Turnover
Q. Investment multiplied by required rate of return is used to calculate __________?
Answer: Imputed Cost of Investment
Q. In standard costing, the standard quantity allocation is multiplied by standard overhead rates for allocating __________?
Answer: Overhead Costs
Q. Energy, machine maintenance, indirect materials and engineering support are considered as __________?
Answer: Variable Overhead Cost
Q. A company must eliminate all those activities that do not add value to products or services in planning of __________?
Answer: Variable Overhead Cost
Q. If the flexible budget amount is $40,000 and variable overhead flexible budget variance is $25,000, then actual costs incurred will be __________?
Answer: $65,000
Q. The budget which highlights the difference between actual quantity and budgeted quantity is termed as __________?
Answer: Flexible Budget Variance
Q. The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as __________?
Answer: Overhead Flexible Budget Variance
Q. The cost allocation base used by an operating manager is classified as __________?
Answer: Machine Hours
Q. The costing technique which traces direct costs by multiplying price rate for producing actual outputs is known as __________?
Answer: Standard Costing
Q. The flexible budget amount is added to variable overhead flexible budget variance to calculate __________?
Answer: Actual Costs Incurred
Q. The depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a __________?
Answer: Fixed Overhead Cost
SET-3
Q. The budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers, can be classified as ___________?
Answer: Kaizen Budgeting
Q. The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets, is classified as ___________?
Answer: Financial Budget
Q. The third step in developing operating budget is ____________?
Answer: Making Predictions About Future
Q. If the indirect manufacturing labor is $20,000, power cost is $5,000, maintenance and supplies are $10,000, then the manufacturing budget will be ____________?
Answer: $35,000
Q. The last step in developing operating budget is ____________?
Answer: Implementing the Decision
Q. The document, which contains the information about the used material sequence, detail and quantity of raw material, is classified as __________?
Answer: Bill of Materials
Q. The plan of action; how an organization meets its opportunities and capabilities is classified as ___________?
Answer: Strategy
Q. The budgeted income statement and the supporting budget schedules are categorized under _____________?
Answer: Operating Budget
Q. The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?
Answer: Budget Production
Q. The higher and accurate budgeted profit forecast of managers lead to __________?
Answer: Low Incentive Bonus
Q. The starting point in the operating budget is __________?
Answer: Revenue Budget
Q. The quantitative expression of action plan by the management of the firm for a specified period of time is classified as ___________?
Answer: Budget
Q. The budget plan in many companies is also referred as ___________?
Answer: Profit Plan
Q. The practice, which makes target more achievable by underestimating revenues or overestimating cost, is called _____________?
Answer: Budgetary Slack
Q. The better administration of budget in budgeting plans require _____________?
Answer: All of the Above
Q. In Kaizen budgeting, the costs are based on all the improvements which are __________?
Answer: To Be Implemented
Q. The degree of influence that a manager would have on the revenues, cost, profit and investment is known as __________?
Answer: Controllability
Q. The compelling strategic plan, promoting coordination and providing framework of performance are ___________?
Answer: Advantages of Budget
Q. The cash receipts are added into beginning cash balance to calculate __________?
Answer: Total Cash Available
Q. The direct labor, salary outlays and direct material purchases are classified as ___________?
Answer: Cash Disbursements
Q. The model which refers possibility for management to conduct sensitivity analysis can be categorized under __________?
Answer: Financial Planning Models
Q. The fourth step in development of operating budget is to __________?
Answer: Predicted Improvements
Q. The continuous budget is also known as __________?
Answer: Rolling Budget
Q. The first step in developing an operating budget is to ___________?
Answer: Identify the Problem
Q. The factor which provides hedge to managers in adverse and unexpected circumstances is known as __________?
Answer: Budgetary Slack
Q. The schedule of expected disbursements and cash receipts is considered as __________?
Answer: Cash Budget
Q. The centers such as revenue, cost, investment and profit all are known as ___________?
Answer: Responsibility Center
Q. The cash sales, accounts receivables and rental receipts all are known as ___________?
Answer: Cash Receipts
Q. If the budget sales units are 8,000, the ending inventory is 2,000 units and the beginning inventory is 3,000, then the budget production would be ___________?
Answer: 7,000 Units
Q. The balancing of all aspects of products or services and all the departments in the company are classified as ____________?
Answer: Coordination
Q. The second step in developing operating budget is to ___________?
Answer: Obtain Information
Q. The budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as ___________?
Answer: Master Budget
Q. The what-if technique, which examines changes in results if original prediction would not be achieved, is called _____________?
Answer: Sensitivity Analysis
Q. The master budget includes all the projections of company’s budget and focuses on __________?
Answer: Financial Plan
Q. If the budget sales units are 2,000, ending inventory is 3,000 units and beginning inventory is 1,000, then the budget production would be ____________?
Answer: 4,000 Units
Q. The type of accounting, which focuses on whom should be asked for information and whom not, is categorized as ____________?
Answer: Responsibility Accounting
Q. The mathematical relationships existing between operating and financing activities that affect master budget are called _____________?
Answer: Financial Planning Models
Q. The non-financial and financial aspects of the plan by the company management is classified as ___________?
Answer: Budget
Q. An act of making sure that all the employees understand the goals is classified as ___________?
Answer: Communication
Q. The type of plan of a company, which quantifies the expectations of cash flows, income and financial position is known as ___________?
Answer: Budget
Q. The financial statements and the budget plans of some companies are also called ___________?
Answer: Preformed Statement
Q. The budget, which predicts the effect of a given level of operations on a cash position is classified as __________?
Answer: Cash Budget
Q. If the budget sales units are 5,000, the ending inventory is 4,000 units and the beginning inventory is 1,000, then the budget production will be __________?
Answer: 8,000 Units
Q. The focus on budget cost of all the activities necessary to sell and produce market offerings is known as __________?
Answer: Activity-Based Budgeting
Q. The type of budget, which is always available for the specified period of future, is called __________?
Answer: Continuous Budget
Q. In master budgeting, the cost drivers for manufacturing overhead costs are ___________?
Answer: Both A and B
Q. The cost influenced by the responsibility center manager is considered as ___________?
Answer: Controllable Cost
Q. The degree to which freedom is given to lower-level managers for decision making is classified as ___________?
Answer: Autonomy
Q. The dysfunctional decision making is also known as ___________?
Answer: Incongruent Decision Making
Q. The minimum freedom for managers and maximum constraints are the main features of ____________?
Answer: Total Centralization
Q. An organizational practice according to which the decision-making freedom is available to lower-level managers is known as _____________?
Answer: Decentralization
Q. The products or services that are transferred between different subunits of a company are classified as _____________?
Answer: Intermediate Product
Q. The decision-making methods used for subunits of company that are highly interdependent on each other is called _____________?
Answer: Congruent Decision Making
Q. An exertion for achieving a set goal is known as ____________?
Answer: Effort
Q. If the opportunity cost per barrel is $45 per unit and incremental cost per barrel is $65, then minimum transfer price will be __________?
Answer: $110
Q. A situation when groups and individuals work together for achieving a particular goal can be classified as __________?
Answer: Goal Congruence
Q. Some of the methods used for determining transfer prices are ___________?
Answer: All of the Above
Q. The per-unit opportunity cost to the selling subunit of company is added into per-unit incremental cost incurred at point of transfer to calculate ____________?
Answer: Minimum Transfer Price
Q. The maximum freedom for managers and minimum constraints are the main features of ___________?
Answer: Total Decentralization
Q. The price charged by one subunit to supply products or services to another unit is called _____________?
Answer: Transfer Price
Q. The means of collecting and using information to coordinate decision and planning through an organization are termed as _____________?
Answer: Management Control Systems
SET-4
Q. If an actual manufacturing overhead cost is $485,000 and actual total quantity of cost allocation base is 4,500 labor hours, then the overhead rate would be _____________?
Answer: $107.78
Q. The costing technique in which the actual direct rates are multiplied by quantity of direct cost inputs is classified as __________?
Answer: Actual Costing
Q. In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800. Then this can be classified as ____________?
Answer: Under Allocated Indirect Cost
Q. If an actual indirect cost incurred is $35,000 and the indirect cost allocated is $43,000, then the under allocated indirect cost will be __________?
Answer: −$8,000
Q. The systematic way of linking a group of indirect costs to a cost object is classified as ___________?
Answer: Cost Allocation Base
Q. If the budgeted annual indirect cost is $85,000 and budgeted annual quantity of cost allocation base is 7,500, then budgeted indirect cost rate would be __________?
Answer: 113.34 per Piece
Q. The manufacturing overhead cost allocated to individual jobs is classified as ___________?
Answer: Both A and C
Q. If the budgeted total direct labor hours are 5,500 and budgeted direct labor cost is $755,000, then the budgeted direct labor cost rate is __________?
Answer: $137.27 per Hour
Q. If the budgeted total direct labor hours are 3,800 and budgeted direct labor cost is $480,000, then the budgeted direct labor cost rate will be ___________?
Answer: $126.32 per Labor Hour
Q. A document which consists of information about labor time usage for a specific job in a specific department is known as __________?
Answer: Labor Time Record
Q. If the budgeted direct labor hours are 3,550 and direct labor cost rate is $500 per labor hour, then total direct labor cost would be __________?
Answer: $1,775,000
Q. The situation in which the cost object has any job, customer or product is known as __________?
Answer: Cost Application Base
Q. In normal costing, the budgeted rate is multiplied by an actual quantity which has been used as the allocation base to calculate ___________?
Answer: Manufacturing Overhead Applied
Q. If the budgeted cost in indirect cost pool is $139,600 and total quantity of cost allocation base is $155,600, then the budgeted indirect cost rate would be __________?
Answer: 89.72%
Q. 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 __________?
Answer: $168,750
Q. In a normal accounting period, the allocated amount of indirect cost is $2,000 and the actual amount is $2,200. It is classified as __________?
Answer: Under Allocated Indirect Cost
Q. If the budgeted annual manufacturing indirect cost is $2,250,000 and the cost allocation base is 2,800 labor hours, then budgeted manufacturing overhead rate will be ___________?
Answer: $803.571 per Labor Hour
Q. If the budgeted indirect cost rate is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be ___________?
Answer: $93,450
Q. The procedure of assigning the direct cost to any cost object is classified as ____________?
Answer: Cost Tracing
Q. If the budgeted cost in indirect cost pool is $144,500 and total quantity of cost allocation base is $165,500, then the budgeted indirect cost rate will be __________?
Answer: 87.31%
Q. If an overhead cost of operating a machine is $500,000 for 1,000 hours, then the cost allocation rate will be ____________?
Answer: $500 per Machine Hour
Q. If the budgeted direct labor hours are 4,550 and direct labor cost rate is $600 per labor hour, then total direct labor cost would be _____________?
Answer: $2,730,000
Q. The process of assigning the direct or indirect cost to any cost object is known as ____________?
Answer: Cost Assignment
Q. An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as ____________?
Answer: Adjusted Allocation Rate Approach
Q. The total indirect cost in the pool divided by an actual quantity of cost allocation base is used to calculate ____________?
Answer: Actual Manufacturing Overhead Rate
Q. An under allocated indirect cost is also called ____________?
Answer: Both A and B
Q. If the budgeted annual indirect cost is $60,000 and budgeted annual quantity of cost allocation base is 3,600, then budgeted indirect cost rate will be __________?
Answer: 16.67 per Piece
Q. A document which contains information about the materials of a specific product in a specific department comes under __________?
Answer: None of Above
Q. The budgeted direct labor hours are multiplied by direct labor cost rate to calculate ____________?
Answer: Budgeted Total Direct Labor Cost
Q. The budgeted total direct labor cost is divided by budgeted total direct labor to calculate ___________?
Answer: Budgeted Direct Labor Cost Rate
Q. If an allocated indirect cost is $1,500 and the actual incurred indirect cost is $1,200, then this is classified as __________?
Answer: Over Allocated Indirect Cost
Q. The budgeted annual indirect costs are divided by budgeted annual quantity of cost allocation base to calculate ___________?
Answer: Budgeted Indirect Cost Rate
Q. Total cost of producing similar products divided by number of units produced is a technique known as ____________?
Answer: Process Costing System
Q. The spread of over allocated overhead and under allocated overhead among work in process, finished goods and cost of goods sold is classified as __________?
Answer: Proration Approach
Q. In an accounting system, the document which supports journal entries is classified as _____________?
Answer: Source Document
Q. If an actual indirect cost incurred is $25,000 and the indirect cost allocated is $23,000, then the over allocated indirect cost would be __________?
Answer: −$2,000
Q. An allocation approach in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called ___________?
Answer: Adjusted Allocation Rate Approach
Q. In normal costing, the manufacturing overhead allocated is also called __________?
Answer: Manufacturing Overhead Applied
Q. If an actual manufacturing overhead cost is $225,000 and actual total quantity of cost allocation base is 2,500 labor hours, then the overhead rate will be __________?
Answer: $90
Q. The costing and allocating situation in which the indirect cost allocated amount is less than actually incurred amount is known as ___________?
Answer: Under Allocated Indirect Cost
Q. In accounting system, a document which consists of all assigned costs for a specific job is classified as __________?
Answer: Both A and B
Q. The single or multiple units of distinct services or products are classified as __________?
Answer: Job
Q. An average unit cost applicable to each similar produced unit is classified as __________?
Answer: Per Unit Cost
Q. A group of individual indirect cost items is defined as ___________?
Answer: Cost Pool
Q. In normal costing, the situation in which the allocated amount of indirect cost is greater than the incurred cost is considered as _____________?
Answer: Over Allocated Indirect Cost
Q. The term which describes the assigning of indirect cost to any cost object is classified as ___________?
Answer: Cost Allocation
Q. The relevant ordering costs are added into relevant carrying costs to calculate __________?
Answer: Relevant Total Costs
Q. The purchase order lead time is multiplied by the number of units sold per unit of time to calculate ____________?
Answer: Reorder Point
Q. The reorder point is divided by number of sold units per unit of time to calculate ___________?
Answer: Purchase Order Lead Time
Q. The stage in manufacturing cycle at which journal entries are made in system of accountancy is known as __________?
Answer: Trigger Point
Q. The costing system which omits some of the journal entries in accounting system is known as ____________?
Answer: Backflush Costing
Q. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate ___________?
Answer: Relevant Inventory Carrying Costs
Q. An average inventory in units is multiplied by annual relevant carrying cost of each unit to calculate ____________?
Answer: Annual Relevant Carrying Costs
Q. If the demand in units is 18,000, relevant ordering cost for each year is $150 and an order quantity is 1,500, then annual relevant ordering cost would be __________?
Answer: $180
Q. The systematic flow of services, goods or information from buying material for product delivery to customers is known as __________?
Answer: Supply Chain
Q. The required rate of return is multiplied by per unit cost of purchased units to calculate __________?
Answer: Relevant Opportunity Cost of Capital
Q. The cost of product failure, error prevention and appraisals can be classified under ___________?
Answer: Costs of Quality
Q. If an average inventory is 2,000 units and annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?
Answer: $5,000
Q. Which of the following is an example of purchasing costs?
Answer: Incoming Freight
Q. If the demand of one year is 25,000 units, relevant ordering cost for each purchase order is $210, and carrying cost of one unit of stock is $25, then the economic order quantity will be ___________?
Answer: 648 Packages
Q. The activities related to coordinating, controlling and planning flow of inventory are classified as ___________?
Answer: Inventory Management
Q. The costs of goods acquired from suppliers are classified as ___________?
Answer: Purchasing Costs
Q. The profit forgone by capital investment in inventory rather than investment somewhere else is classified as ____________?
Answer: Relevant Opportunity Cost of Capital
Q. If the relevant incremental costs are $5,000 and the relevant opportunity cost of invested capital is $2,500, then the relevant inventory carrying costs would be ____________?
Answer: $7,500
Q. The number of purchase orders for each year is multiplied by relevant ordering cost for each purchase order to calculate _____________?
Answer: Annual Relevant Ordering Costs
SET-5
Q. If the fixed setup cost is $32,000 and the variable setup cost is $12,000, then the setup cost will be ___________?
Answer: $44,000
Q. If fixed overhead allocated for actual output units is $36,000 and the production volume variance is $7,000, then budgeted fixed overhead will be __________?
Answer: $43,000
Q. The difference between actual quantity and budgeted quantity of cost allocation base is classified as __________?
Answer: Variable Overhead Efficiency Variance
Q. The lump-sum cost that remains unchanged in total despite changes in total volume is classified as __________?
Answer: Fixed Overhead Cost
Q. The third step in developing operating budget is to __________?
Answer: Identify Variable Overhead Cost
Q. If the fixed overhead allocated for actual output unit is $9,800 and budgeted fixed overhead is $22,000, then production volume variance would be __________?
Answer: $12,200
Q. If the budgeted total cost in fixed overhead is $465,200 and the budgeted total quantity is 8,750, then budgeted fixed overhead cost per unit will be ____________?
Answer: $53.17
Q. The fourth step in development of operating budget is to __________?
Answer: Compute the Per Unit Rate
Q. If the variable overhead flexible budget variance is $37,000 and the flexible budget amount is $10,000, then the actual incurred costs would be ____________?
Answer: $47,000
Q. In overhead cost variance analysis, the variable overhead does not include _____________?
Answer: Production Volume Variance
Q. Indirect setup labor costs, costs of setup and equipment maintenance, and costs of indirect material can be categorized as ____________?
Answer: Variable Batch Costs
Q. The costing technique which classifies all the activities in costing hierarchy is classified as ____________?
Answer: Activity-Based Costing
Q. A measure which evaluates overall tradeoff and effect among non-financial performance measures is _____________?
Answer: Financial Measures
Q. Higher plant leasing, higher administrative costs, and higher depreciation on equipment and plants are all factors of _____________?
Answer: Unfavorable Spending Variance
Q. Lower plant leasing, lower administrative costs, and lower depreciation on equipment and plants are all factors of _____________?
Answer: Favorable Spending Variance
Q. Less skilled workers for operating machines than expected are classified as ___________?
Answer: Cause for Exceeding Budget
Q. If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation are $7,550 and $4,500 respectively, then the variable overhead spending variance could be __________?
Answer: $152,500
Q. If the total setup cost is $35,000 and fixed setup cost is $19,000, then the variable fixed cost would be _____________?
Answer: $16,000
Q. In overhead cost variance analysis, the fixed overhead does not include ____________?
Answer: Efficiency Variance
Q. To calculate fixed overhead flexible budget variance, actual incurred cost is subtracted from ___________?
Answer: Flexible Budget Amount
Q. If the cost of indirect support labor is $5,000, equipment maintenance setup cost is $7,000 and machinery leasing cost is $4,000, then variable fixed cost will be ___________?
Answer: $16,000
Q. The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate _____________?
Answer: Production Volume Variance
Q. The second step in developing operating budget is to __________?
Answer: Select Allocation Bases
Q. In flexible budget analysis, the variable overhead flexible budget variance is equal to __________?
Answer: Actual Cost − Flexible Budget Amount
Q. If the fixed setup cost is $21,000 and the variable setup cost is $11,000, then the setup cost would be __________?
Answer: $32,000
Q. In production volume variance, an acquired fixed cost such as equipment and plant lease is known as ____________?
Answer: Lump-Sum Fixed Cost
Q. If the total setup cost is $42,000 and fixed setup cost is $17,000, then the variable fixed cost would be ____________?
Answer: $25,000
Q. An activity-based costing hierarchy includes _____________?
Answer: All of the Above
Q. If the flexible budget amount is $21,500 and fixed overhead flexible budget variance is $10,000, then actual incurred cost will be __________?
Answer: $31,500
Q. In manufacturing settings, the budgeted fixed overhead rate is classified as ___________?
Answer: Production Denominator Level
Q. The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be __________?
Answer: $37,500
Q. The variance is solely because of the difference between budgeted quantity and the ___________?
Answer: Actual Quantity
Q. Of the cost allocation base, the difference between actual and budgeted variable overhead cost multiplied by actual quantity for actual output is classified as ____________?
Answer: Variable Overhead Spending Variance
Q. If actual quantity of cost allocation base is $48,000 and budgeted quantity of cost allocation base is $28,000, then variable overhead efficiency variance would be __________?
Answer: $20,000
Q. All salaries paid to supervisors and engineers and cost of leasing equipment are classified as __________?
Answer: Fixed Setup Costs
Q. If the variable overhead flexible budget variance is $26,000 and the flexible budget amount is $15,000, then actual incurred costs will be __________?
Answer: $41,000
Q. The measure which provides feedback on manager’s performance considering individual aspects only is classified as ___________?
Answer: Non-Financial Measures
Q. If the salaries of engineers are $3,000, salaries of supervisors are $4,000 and equipment leasing cost is $3,000, then fixed setup costs will be ___________?
Answer: $10,000
Q. If the budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250, then budgeted fixed overhead output unit will be __________?
Answer: $112,500
Q. If actual incurred cost is $387,500 and flexible budget amount is $168,750, then fixed overhead flexible budget variance would be ____________?
Answer: $218,750
Q. If fixed overhead allocated for actual output unit is $7,500 and budgeted fixed overhead is $21,000, then production volume variance will be __________?
Answer: $13,500
Q. A cost consisting of some fixed and some variable cost with respect to machine setup hours is termed as __________?
Answer: Setup Cost
Q. An unfavorable production-volume variance is used to measure the amount of __________?
Answer: Fixed Setup Cost
Q. If actual cost incurred is $627,500 and flexible budget amount is $358,750, then fixed overhead flexible-budget variance will be __________?
Answer: $268,750
Q. The process of ensuring preventive measures to be done in all machines is classified as __________?
Answer: Potential Management Response
Q. The step of installing production scheduling procedures to improve plant operations is considered as __________?
Answer: Potential Management Response
Q. If actual quantity of cost allocation base is $56,000 and budgeted quantity of cost allocation base is $17,000, then variable overhead efficiency variance is ___________?
Answer: $39,000
Q. In the budgeted fixed overhead rate, the number of machine hours is considered as __________?
Answer: Denominator Level
Q. The production volume variance is also called __________?
Answer: Denominator Level Variance
Q. If the sales budget variance for operating income is $58,000 and the static budget amount is $15,000, then flexible budget amount will be _____________?
Answer: $73,000
Q. If the flexible budget amount is $82,000 and the actual result is $45,000, then the flexible budget variance will be ___________?
Answer: $37,000
Q. If the flexible budget amount is $27,000 and flexible budget variance is $12,000, then actual result amount would be _____________?
Answer: $39,000
Q. If the sales budget variance is $47,000 and the flexible budget amount is $77,000, then the static budget amount will be __________?
Answer: $30,000
Q. If the sales budget variance is $57,000 and the flexible budget amount is $97,000, then the static budget amount will be _____________?
Answer: $40,000
Q. If the flexible budget amount is $57,000 and flexible budget variance is $14,000, then actual result amount will be __________?
Answer: $71,000
Q. If the flexible budget amount is $62,000 and actual result is $35,000, then the flexible budget variance would be ___________?
Answer: $27,000
Q. An actual selling price is subtracted from budgeted selling price and then multiplied by actual sold units to calculate _____________?
Answer: Selling Price Variance
Q. The difference between the flexible budget amount and the corresponding actual result is called ____________?
Answer: Flexible Budget Variance
Q. The static budget amount is subtracted from the flexible budget amount to calculate the __________?
Answer: Sales Budget Variance
Q. The flexible budget amount is added to flexible budget variance to calculate __________?
Answer: Actual Result
Q. If the sales budget variance for operating income is $68,000 and the static budget amount is $19,000, then flexible budget amount will be ____________?
Answer: $87,000
Q. The subtracted flexible budget amount from actual result is used to calculate _____________?
Answer: Flexible Budget Variance
Q. If the static budget is $208,000 and the flexible budget amount is $305,000, then the sales budget variance will be ___________?
Answer: $97,000
Q. If actual result is $26,000 and flexible budget amount is $13,000, then the flexible budget variance will be __________?
Answer: $13,000
Q. The flexible budget variance for the revenues of a company is classified as __________?
Answer: Selling Price Variance
Q. If the static budget amount is $9,000 and the flexible budget amount is $20,000, then the sales volume variance will be __________?
Answer: $11,000
Q. If actual selling price is $500, budgeted selling price is $250 and actual units sold are 350, then the selling price variance will be ____________?
Answer: $87,500
Q. If actual result is $25,000 and flexible budget amount is $11,000, then the flexible budget variance is __________?
Answer: $14,000
Q. If the static budget amount is $6,000 and the flexible budget amount is $15,000, then the sales volume variance will be ___________?
Answer: $9,000
SET-6
Q. 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 _____________?
Answer: B. $107.78
Q. The costing technique, in which the actual direct rates are multiplied to quantity of direct cost inputs is classified as __________?
Answer: B. Actual Costing
Q. In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as ____________?
Answer: A. Under Allocated Indirect Cost
Q. If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be __________?
Answer: C. −$8000
Q. The systematic way of linking group of indirect cost to a cost object is classified as ___________?
Answer: D. Cost Allocation Base
Q. If the budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be __________?
Answer: B. 113.34 per piece
Q. The manufacturing overhead cost allocated to individual jobs is classified as ___________?
Answer: D. Both A and C
Q. If the budgeted total direct labor hours are 5500 and budgeted direct labor cost is $755000, then the budgeted direct labor cost rate is _________?
Answer: B. $137.27 per hour
Q. If the budgeted total direct labor hours are 3800 and budgeted direct labor cost is $480000, then the budgeted direct labor cost rate will be ___________?
Answer: A. $126.32 per labor hour
Q. A document which consists information about labor time usage, for specific job in a specific department, is known as __________?
Answer: B. Labor Time Record
Q. If the budgeted direct labor hours are 3550 and direct labor cost rate is $500 per labor hour, then total direct labor cost would be __________?
Answer: A. $1,775,000
Q. The situation in which the cost object has any job, customer or product is known as _________?
Answer: A. Cost Application Base
Q. In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate ___________?
Answer: B. Manufacturing Overhead Applied
Q. 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 __________?
Answer: D. 89.72%
Q. 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 __________?
Answer: A. $168,750
Q. In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as __________?
Answer: C. Under Allocated Indirect Cost
Q. 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 ___________?
Answer: A. $803.571 per labor hour
Q. If the budgeted indirect cost rate is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be __________?
Answer: A. $93,450
Q. The procedure of assigning the direct cost to any cost object is classified as ____________?
Answer: B. Cost Tracing
Q. 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 __________?
Answer: B. 87.31%
Q. If an overhead cost of operating a machine is $500000 for 1000 hours, then the cost allocation rate will be ____________?
Answer: C. $500 per machine hour
Q. 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 _____________?
Answer: C. $2,730,000
Q. The process of assigning the direct or indirect cost to any cost object is known as ____________?
Answer: A. Cost Assignment
Q. An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as ____________?
Answer: D. Adjusted Allocation Rate Approach
Q. The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate ____________?
Answer: A. Actual Manufacturing Overhead Rate
Q. An under allocated indirect cost is also called ____________?
Answer: D. Both A and B
Q. If the budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be __________?
Answer: B. 16.67 per piece
Q. A document which contains information about the materials of specific product, in specific department comes under __________?
Answer: D. None of Above
Q. The budgeted direct labor hours are multiplied to direct labor cost rate, to calculate ____________?
Answer: B. Budgeted Total Direct Labor Cost
Q. The budgeted total direct labor cost is divided with budgeted total direct labor, to calculate ___________?
Answer: C. Budgeted Direct Labor Cost Rate
Q. If an allocated indirect cost is $1500 and the actual incurred indirect cost is $1200, then this is classified as __________?
Answer: D. Over Allocated Indirect Cost
Q. The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate ___________?
Answer: C. Budgeted Indirect Cost Rate
Q. Total cost of producing similar products divided by number of units produced is a technique known as ____________?
Answer: D. Process Costing System
Q. The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?
Answer: A. Proration Approach
Q. In an accounting system, the document which supports journal entries is classified as _____________?
Answer: C. Source Document
Q. If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?
Answer: B. −$2000
Q. An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called ___________?
Answer: B. Adjusted Allocation Rate Approach
Q. In normal costing, the manufacturing overhead allocated is also called _________?
Answer: A. Manufacturing Overhead Applied
Q. 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 __________?
Answer: B. $90
Q. The costing and allocating situation, in which the indirect cost allocated amount is less than actually incurred amount is known as ___________?
Answer: C. Under Allocated Indirect Cost
Q. In accounting system, a document which consists of all assigned cost for specific job is classified as __________?
Answer: D. Both A and B
Q. The single or multiple units of distinct services or products are classified as _________?
Answer: B. Job
Q. A average unit cost, applicable to each similar produced unit is classified as __________?
Answer: A. Per Unit Cost
Q. A group of individual indirect cost item is defined as ___________?
Answer: B. Cost Pool
Q. In normal costing, the situation in which the allocated amount of indirect cost is greater than the incurred cost, is considered as _____________?
Answer: B. Over Allocated Indirect Cost
Q. The term which describes the assigning of indirect cost, to any cost object is classified as ___________?
Answer: A. Cost Allocation
SET-7
Q. In stand-alone revenue-allocation method, the type of weights available for this method are ____________?
Answer: D. All of Above
Q. The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as ___________?
Answer: A. Complete Reciprocal Costs
Q. The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
Answer: B. Common Cost
Q. The products, divisions and customers are the examples of ___________?
Answer: D. Revenue Object
Q. The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as ___________?
Answer: D. Incremental Cost Allocation Method
Q. The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?
Answer: C. Stand-Alone Cost Allocation Method
Q. 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 ____________?
Answer: C. $2,065,000
Q. The method which allocates the cost of support department to only operating departments is called ___________?
Answer: B. Direct Method
Q. The second ranked product in incremental revenue allocation method is termed as __________?
Answer: C. Second Incremental Product
Q. The approaches to allocate costs of support department do not include ___________?
Answer: A. Sales Mix Allocation Method
Q. The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?
Answer: C. Bundled Product
Q. The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as _____________?
Answer: C. Incremental Revenue Allocation Method
Q. The department which directly adds value to product or service is known as __________?
Answer: D. Both A and B
Q. The department which provides assisting services to internal departments is classified as __________?
Answer: B. Support Department
Q. The cost of new machine is considered as ______________?
Answer: A. Relevant
Q. Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?
Answer: A. Outsourcing
Q. In relevance concepts, the relevant revenues are also termed as ___________?
Answer: C. Expected Future Revenues
Q. The costs that are unavoidable and remain unchanged no matter what done are classified as __________?
Answer: A. Sunk Costs
Q. An amount of additional cost incurred for any particular activity is classified as ____________?
Answer: A. Incremental Cost
Q. The second step in decision making process is ___________?
Answer: D. Obtaining Information
Q. The type of outcomes that can be measured in numerical terms are classified as ___________?
Answer: B. Quantitative Factors
Q. The cost such as dispose value of an old machine is $6000 is classified as _____________?
Answer: D. Relevant
Q. The decisions made by company, which products to manufacture and sell and in what quantities, of many product lines are called ____________?
Answer: C. Product Mix Decisions
Q. The formal method of making choices, considering help of quantitative and qualitative analysis is classified as ____________?
Answer: B. Decision Method
Q. An example of qualitative factor is __________?
Answer: A. Employee Morale
Q. The difference of cost, which occurs while considering the alternatives can be classified as ___________?
Answer: D. Differential Cost
Q. The financial factors measured in numerical terms, having some monetary value are considered as ___________?
Answer: B. Quantitative Factors
Q. An example of quantitative factor is ____________?
Answer: D. Cost of Materials
Q. The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as __________?
Answer: B. Make or Buy Decisions
Q. The third step in decision making process is ____________?
Answer: C. Making Predictions
Q. The kind of costs that has been occurred in past are also known as __________?
Answer: C. Sunk Costs
Q. An investment of money in idle inventory, in place of investing the same amount of money somewhere else is an example of ___________?
Answer: D. Opportunity Cost
Q. In broader categories, the outcomes of decisions are classified as __________?
Answer: D. Both B and C
Q. The first step in decision making process is to ___________?
Answer: A. Identify the Problem
Q. When an essential information for calculation of income statement is missing, then the costs that can be considered for this purpose is called _____________?
Answer: D. Relevant Costs
Q. In today’s global world, an outsourcing of products or services from lower cost countries is classified as __________?
Answer: B. Off-Shoring
Q. The costs that behaves as irrelevant costs in process of decision making are classified as ___________?
Answer: D. Sunk Costs
Q. The low level managers in organizations are to make decisions about _____________?
Answer: B. Operating Income Maximization
Q. The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as __________?
Answer: C. Business Function Costs
Q. The production of goods or services that can be bought from outside suppliers is classified as ___________?
Answer: C. Outsourcing
Q. The type of outcomes, which can never be measured in numerical terms in books of accounts are classified as _________?
Answer: C. Qualitative Factors
Q. The fourth step in decision making process is ____________?
Answer: B. Making Decisions
Q. The costs such as book value of old machines are $25000 can be a classified as an example of ____________?
Answer: C. Irrelevant
Q. The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?
Answer: B. Opportunity Cost
Q. The relevant costs are classified in relevance concepts as ____________?
Answer: A. Expected Future Costs
Q. The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
Answer: C. Differential Revenue
Q. As compared to irrelevant cost, the occurrence of relevant costs must ___________?
Answer: B. Be in Future
Q. The factor, which is largely considered in making or buying decisions is __________?
Answer: D. Both A and B
Q. The book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as ___________?
Answer: B. Sunk Cost
Q. When the fixed cost is divided into contribution margin per unit, it gives _________?
Answer: C. Breakeven Number of Units
Q. If the contribution margin percentage is 30%, the selling price is $5000, then the contribution margin per unit will be ____________?
Answer: C. $1,500
Q. If the contribution margin is $13000, the total variable cost is $7000 then the total revenue will be _____________?
Answer: C. $20,000
Q. If the selling price is $5000, the contribution margin per unit is $1000, then the contribution margin percentage will be _____________?
Answer: B. 20%
Q. If the revenue is $15000, the total variable cost is $5000 and the fixed cost $2000 then the operating income will be ____________?
Answer: B. $8,000
Q. If the total revenue is $9000, the total variable cost is $2000, then the contribution margin will be ___________?
Answer: D. $7,000
Q. If the contribution margin is $12000, the total variable cost is $7000, then the total revenue will be _____________?
Answer: C. $19,000
Q. If the fixed cost is $30000, the contribution margin percentage is 40%, then the breakeven revenue will be ____________?
Answer: B. $75,000
Q. The variable cost per unit is multiplied to the quantity of sold units to calculate ____________?
Answer: B. Variable Cost
Q. The contribution margin per unit is multiplied to number of units sold to calculate _____________?
Answer: C. Contribution Margin
Q. If the variable cost is $50000 and the fixed cost is $30000, then the operating income would be _____________?
Answer: A. $80,000
Q. The contribution per unit is $1200 and the number of units sold is $80, then the contribution margin would be ____________?
Answer: D. $9,600
Q. If the selling price is $20 and the number of units sold are 800, then the revenue is equal to ___________?
Answer: A. $16,000
Q. The total revenues is subtracted from total variable costs to calculate ___________?
Answer: C. Contribution Margin
Q. If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________?
Answer: A. $400
Q. If the contribution margin per unit is $40 per unit and selling price is $200, then the contribution margin percentage would be ____________?
Answer: A. 20%
Q. If the contribution margin is $15000 and the units sold are 500 units, then the contribution margin per unit would be ___________?
Answer: B. $30 per Unit
Q. The variable cost is subtracted from fixed costs to calculate ____________?
Answer: C. Operating Income
Q. At the break-even point, an operating income must be equal to ____________?
Answer: D. Zero
SET-8
Q. In stand-alone revenue-allocation method, the type of weights available for this method are ____________?
Answer: D. all of above
Q. The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as ___________?
Answer: A. complete reciprocal costs
Q. The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
Answer: B. common cost
Q. The products, divisions and customers are the examples of ___________?
Answer: D. revenue object
Q. The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as ___________?
Answer: D. incremental cost allocation method
Q. The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?
Answer: C. stand-alone cost allocation method
Q. 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 ____________?
Answer: C. $2,065,000
Q. The method which allocates the cost of support department to only operating departments is called ___________?
Answer: B. direct method
Q. The second ranked product in incremental revenue allocation method is termed as __________?
Answer: C. Second incremental product
Q. The approaches to allocate costs of support department do not include ___________?
Answer: A. sales mix allocation method
Q. The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?
Answer: C. bundled product
Q. The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as _____________?
Answer: C. incremental revenue allocation method
Q. The department which directly adds value to product or service is known as __________?
Answer: D. both a and b
Q. The department which provides assisting services to internal departments is classified as __________?
Answer: B. support department
Q. The cost of new machine is considered as ______________?
Answer: A. relevant
Q. Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?
Answer: A. outsourcing
Q. In relevance concepts, the relevant revenues are also termed as ___________?
Answer: C. expected future revenues
Q. The costs that are unavoidable and remain unchanged no matter what done are classified as __________?
Answer: A. sunk costs
Q. An amount of additional cost incurred for any particular activity is classified as ____________?
Answer: A. incremental cost
Q. The second step in decision making process is ___________?
Answer: D. obtaining information
Q. The type of outcomes that can be measured in numerical terms are classified as ___________?
Answer: B. quantitative factors
Q. The cost such as dispose value of an old machine is $6000 is classified as _____________?
Answer: D. relevant
Q. The decisions made by company, which products to manufacture and sell and in what quantities, of many product lines are called ____________?
Answer: C. product mix decisions
Q. The formal method of making choices, considering help of quantitative and qualitative analysis is classified as ____________?
Answer: B. decision method
Q. An example of qualitative factor is __________?
Answer: A. employee morale
Q. The difference of cost, which occurs while considering the alternatives can be classified as ___________?
Answer: D. differential cost
Q. The financial factors measured in numerical terms, having some monetary value are considered as ___________?
Answer: B. quantitative factors
Q. An example of quantitative factor is ____________?
Answer: D. cost of materials
Q. The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as __________?
Answer: B. make or buy decisions
Q. The third step in decision making process is ____________?
Answer: C. making predictions
Q. The kind of costs that has been occurred in past are also known as __________?
Answer: C. sunk costs
Q. An investment of money in idle inventory, in place of investing the same amount of money somewhere else is an example of ___________?
Answer: D. opportunity cost
Q. In broader categories, the outcomes of decisions are classified as __________?
Answer: D. both B and C
Q. The first step in decision making process is to ___________?
Answer: A. identify the problem
Q. When an essential information for calculation of income statement is missing, then the costs that can be considered for this purpose is called _____________?
Answer: D. relevant costs
Q. In today’s global world, an outsourcing of products or services from lower cost countries is classified as __________?
Answer: B. off-shoring
Q. The costs that behaves as irrelevant costs in process of decision making are classified as ___________?
Answer: D. sunk costs
Q. The low level managers in organizations are to make decisions about _____________?
Answer: B. operating income maximization
Q. The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as __________?
Answer: C. business function costs
Q. The production of goods or services that can be bought from outside suppliers is classified as ___________?
Answer: C. outsourcing
Q. The type of outcomes, which can never be measured in numerical terms in books of accounts are classified as _________?
Answer: C. qualitative factors
Q. The fourth step in decision making process is ____________?
Answer: B. making decisions
Q. The costs such as book value of old machines are $25000 can be a classified as an example of ____________?
Answer: C. irrelevant
Q. The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?
Answer: B. opportunity cost
Q. The relevant costs are classified in relevance concepts as ____________?
Answer: A. expected future costs
Q. The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
Answer: C. differential revenue
Q. As compared to irrelevant cost, the occurrence of relevant costs must ___________?
Answer: B. be in future
Q. The factor, which is largely considered in making or buying decisions is __________?
Answer: D. both a and b
Q. The book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as ___________?
Answer: B. sunk cost
Q. In stand-alone revenue-allocation method, the type of weights available for this method are ____________?
Answer: D. all of above
Q. The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as ___________?
Answer: A. complete reciprocal costs
Q. The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?
Answer: B. common cost
Q. The products, divisions and customers are the examples of ___________?
Answer: D. revenue object
Q. The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as ___________?
Answer: D. incremental cost allocation method
Q. The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?
Answer: C. stand-alone cost allocation method
Q. 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 ____________?
Answer: C. $2,065,000
Q. The method which allocates the cost of support department to only operating departments is called ___________?
Answer: B. direct method
Q. The second ranked product in incremental revenue allocation method is termed as __________?
Answer: C. Second incremental product
Q. The approaches to allocate costs of support department do not include ___________?
Answer: A. sales mix allocation method
Q. The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?
Answer: C. bundled product
Q. The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as _____________?
Answer: C. incremental revenue allocation method
Q. The department which directly adds value to product or service is known as __________?
Answer: D. both a and b
Q. The department which provides assisting services to internal departments is classified as __________?
Answer: B. support department
Q. The cost of new machine is considered as ______________?
Answer: A. relevant
Q. Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?
Answer: A. outsourcing
Q. In relevance concepts, the relevant revenues are also termed as ___________?
Answer: C. expected future revenues
Q. The costs that are unavoidable and remain unchanged no matter what done are classified as
Answer: A. sunk costs
Q. An amount of additional cost incurred for any particular activity is classified as ____________?
Answer: A. incremental cost
Q. The second step in decision making process is ___________?
Answer: D. obtaining information
Q. The type of outcomes that can be measured in numerical terms are classified as ___________?
Answer: B. quantitative factors
Q. The cost such as dispose value of an old machine is $6000 is classified as _____________?
Answer: D. relevant
Q. The decisions made by company, which products to manufacture and sell and in what quantities, of many product lines are called ____________?
Answer: C. product mix decisions
Q. The formal method of making choices, considering help of quantitative and qualitative analysis is classified as ____________?
Answer: B. decision method
Q. An example of qualitative factor is __________?
Answer: A. employee morale
Q. The difference of cost, which occurs while considering the alternatives can be classified as ___________?
Answer: D. differential cost
Q. The financial factors measured in numerical terms, having some monetary value are considered as ___________?
Answer: B. quantitative factors
Q. An example of quantitative factor is ____________?
Answer: D. cost of materials
Q. The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as __________?
Answer: B. make or buy decisions
Q. The third step in decision making process is ____________?
Answer: C. making predictions
Q. The kind of costs that has been occurred in past are also known as __________?
Answer: C. sunk costs
Q. An investment of money in idle inventory, in place of investing the same amount of money somewhere else is an example of ___________?
Answer: D. opportunity cost
Q. In broader categories, the outcomes of decisions are classified as __________?
Answer: D. both B and C
Q. The first step in decision making process is to ___________?
Answer: A. identify the problem
Q. When an essential information for calculation of income statement is missing, then the costs that can be considered for this purpose is called _____________?
Answer: D. relevant costs
Q. In today’s global world, an outsourcing of products or services from lower cost countries is classified as __________?
Answer: B. off-shoring
Q. The costs that behaves as irrelevant costs in process of decision making are classified as ___________?
Answer: D. sunk costs
Q. The low level managers in organizations are to make decisions about _____________?
Answer: B. operating income maximization
Q. The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as __________?
Answer: C. business function costs
Q. The production of goods or services that can be bought from outside suppliers is classified as ___________?
Answer: C. outsourcing
Q. The type of outcomes, which can never be measured in numerical terms in books of accounts are classified as _________?
Answer: C. qualitative factors
Q. The fourth step in decision making process is ____________?
Answer: B. making decisions
Q. The costs such as book value of old machines are $25000 can be a classified as an example of ____________?
Answer: C. irrelevant
Q. The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as __________?
Answer: B. opportunity cost
Q. The relevant costs are classified in relevance concepts as ____________?
Answer: A. expected future costs
Q. The difference that exists between total revenues, can be earned from two different alternatives is termed as ________?
Answer: C. differential revenue
Q. As compared to irrelevant cost, the occurrence of relevant costs must ___________?
Answer: B. be in future
Q. The factor, which is largely considered in making or buying decisions is __________?
Answer: D. both a and b
Q. The book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as ___________?
Answer: B. sunk cost
Q. When the fixed cost is divided into contribution margin per unit, it gives _________?
Answer: C. breakeven number of units
Q. If the contribution margin percentage is 30%, the selling price is $5000, then the contribution margin per unit will be ____________?
Answer: C. $1,500
Q. If the contribution margin is $13000, the total variable cost is $7000 then the total revenue will be _____________?
Answer: C. $20,000
Q. If the selling price is $5000, the contribution margin per unit is $1000, then the contribution margin percentage will be _____________?
Answer: B. 20%
Q. If the revenue is $15000, the total variable cost is $5000 and the fixed cost $2000 then the operating income will be ____________?
Answer: B. $8,000
Q. If the total revenue is $9000, the total variable cost is $2000, then the contribution margin will be ___________?
Answer: D. $7,000
Q. If the contribution margin is $12000, the total variable cost is $7000, then the total revenue will be _____________?
Answer: C. $19,000
Q. If the fixed cost is $30000, the contribution margin percentage is 40%, then the breakeven revenue will be ____________?
Answer: B. $75,000
Q. The variable cost per unit is multiplied to the quantity of sold units to calculate ____________?
Answer: B. variable cost
Q. The contribution margin per unit is multiplied to number of units sold to calculate _____________?
Answer: C. contribution margin
Q. If the variable cost is $50000 and the fixed cost is $30000, then the operating income would be _____________?
Answer: A. $80,000
Q. The contribution per unit is $1200 and the number of units sold is $80, then the contribution margin would be ____________?
Answer: D. $9,600
Q. If the selling price is $20 and the number of units sold are 800, then the revenue is equal to ___________?
Answer: A. $16,000
Q. The total revenues is subtracted from total variable costs to calculate ___________?
Answer: C. contribution margin
Q. If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________?
Answer: A. $400
Q. If the contribution margin per unit is $40 per unit and selling price is $200, then the contribution margin percentage would be ____________?
Answer: A. 20%
Q. If the contribution margin is $15000 and the units sold are 500 units, then the contribution margin per unit would be ___________?
Answer: B. $30 per unit
Q. The variable cost is subtracted from fixed costs to calculate ____________?
Answer: C. operating income
Q. At the break-even point, an operating income must be equal to ____________?
Answer: D. zero
Q. If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be _____________?
Answer: B. $28,000
Q. The quantity of manufactured goods are sold at which the total cost equal, is known as _____________?
Answer: A. breakeven point
Q. If the selling price is $2000 and the contribution margin per unit is $800, then the contribution margin percentage would be ____________?
Answer: C. $16,000
Q. If the contribution margin per unit is $500 and the contribution margin percentage is 25%, then the selling price will be ____________?
Answer: A. $2,000
Q. In a relevant range, the variable cost per unit, selling price and total fixed costs are ___________?
Answer: D. known and constant
Q. If the fixed cost is $40000 and the contribution margin per unit is $800 per unit, then the breakeven of units will be ___________?
Answer: C. 50 units
Q. If the fixed cost is $30000 and the contribution margin per unit is $600 per unit, then the breakeven in units will be ____________?
Answer: A. 50 units
Q. If the contribution margin percentage is 20% and the selling price is $4000, then contribution margin per unit will be ______________?
Answer: D. $800
Q. The selling price is multiplied to quantity of sold units to calculate _____________?
Answer: A. revenues
Q. The contribution margin per unit is divided by selling price to calculate ____________?
Answer: B. contribution margin percentage
Q. In manufacturing companies, the revenue and cost drivers are categorized under ____________?
Answer: C. number of units sold
Q. If the fixed cost is $50000 and the contribution margin percentage is 20%, then the breakeven revenue will be _____________?
Answer: C. $250,000
Q. The contribution margin per unit is divided by contribution margin percentage to calculate ______________?
Answer: D. selling price
Q. The fixed cost is divided to contribution margin to calculate _____________?
Answer: A. breakeven revenue
Q. The contribution margin per unit is divided by the selling price of the product to calculate ______________?
Answer: D. contribution margin percentage
Q. If the contribution margin per unit is $800 and the selling price is $20000, then the contribution margin percentage will be _____________?
Answer: C. 4%
Q. The difference between variable cost per unit and the selling price can be classified as _____________?
Answer: A. contribution margin per unit
Q. If the variable cost per unit is $25 and the quantity of units sold is 5000, then the total variable cost would be __________?
Answer: B. $125,000
Q. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be __________?
Answer: C. $516.67
Q. If the contribution margin per unit is $1000 and the contribution margin percentage is 25%, then the selling price would be ____________?
Answer: B. $4,000
Q. If the total revenue is $10000 and the total variable cost is $4000, then the contribution margin would be ___________?
Answer: C. $6,000
Q. If the contribution per unit is $900 and the number of units sold is $70, then the contribution margin will be _____________?
Answer: C. $63,000
Q. In the process of examining, occurred changes in total revenues, operating income and costs is known as _____________?
Answer: D. cost volume profit analysis
Q. The contribution margin per unit is $500 per unit and the breakeven per unit is $35, then the fixed cost would be ___________?
Answer: D. $17,500
Q. In cost-plus pricing, the ‘plus’ refers to a component named as ___________?
Answer: B. markup
Q. The product costing technique in which markup component is added into cost base, to set a target price is known as __________?
Answer: C. cost plus pricing
Q. The process which leads to disassembling and analysis of competitors, operating activities to become acquainted with competitors’ technologies is called ___________?
Answer: B. reverse engineering
Q. The practice of seller to charge higher price for same market offering is classified as __________?
Answer: A. peak-load pricing
Q. The systematic evaluation of value chain, to reduce costs and high quality, to achieve satisfied customers is known as __________?
Answer: B. value engineering
Q. An income, which a company aims to earn by selling each unit of market offering is classified as ____________?
Answer: A. target operating income per unit
Q. The kind of cost which on elimination, would not reduce the perceived usefulness that customers can obtain by using the market offering is known as ___________?
Answer: D. non-value added cost
Q. The concept, which states that resources are used to meet particular goals is ____________?
Answer: A. cost incurrence
