All Free Accounting MCQs with Answers
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1,971 questions · page 42 of 99
821. The process of assigning the direct or indirect cost to any cost object is known as ____________?
- A. cost assignment
- B. cost expectation
- C. event assignment
- D. probability assignment
Explanation: Cost assignment is the process of attaching a direct or indirect cost to a cost object, such as a product, service, department, or…
Correct answer: cost assignment- A. unadjusted allocation rate approach
- B. adjusted budget rate approach
- C. unadjusted budget rate approach
- D. adjusted allocation rate approachFinance
Explanation: The adjusted allocation rate approach combines normal costing's systematic allocation with the use of actual manufacturing overhead…
Correct answer: adjusted allocation rate approachFinance- A. actual manufacturing overhead rate
- B. manufacturing overhead costs
- C. overhead rate
- D. direct rate
Explanation: Dividing the indirect cost pool by the actual quantity of the allocation base gives the actual manufacturing overhead rate.
Correct answer: actual manufacturing overhead rate- A. under applied indirect cost
- B. under absorbed indirect cost
- C. absorbed indirect cost
- D. both a and bAccounting & Auditing
Explanation: An underallocated indirect cost means that the amount applied to products was less than the actual indirect cost incurred.
Correct answer: both a and bAccounting & Auditing- A. 15.67 per piece
- B. 16.67 per piece
- C. 14.67 per piece
- D. 13.67 per piece
Explanation: The budgeted indirect cost rate is calculated as budgeted indirect cost divided by the budgeted allocation base: $60,000 ÷ 3,600 = $16.67…
Correct answer: 16.67 per piece826. The budgeted direct labor hours are multiplied to direct labor cost rate, to calculate ____________?
- A. expected total direct labor cost
- B. budgeted total direct labor cost
- C. budgeted total indirect labor cost
- D. expected labor hours
Explanation: Multiplying budgeted direct labor hours by the direct labor cost rate estimates the total direct labor cost planned for the period.
Correct answer: budgeted total direct labor cost- A. budgeted indirect labor cost rate
- B. expected direct labor cost rate
- C. budgeted direct labor cost rate
- D. expected indirect labor cost rate
Explanation: Dividing budgeted total direct labor cost by budgeted direct labor hours produces the budgeted direct labor cost rate per hour.
Correct answer: budgeted direct labor cost rate- A. applied indirect cost
- B. applied direct cost
- C. incurred indirect cost
- D. over allocated indirect cost
Explanation: Allocated overhead of $1,500 exceeds the actual incurred overhead of $1,200 by $300, so the overhead is overallocated.
Correct answer: over allocated indirect cost- A. expected indirect cost rate
- B. expected direct cost rate
- C. budgeted indirect cost rate
- D. budgeted direct cost rateSearch Public Records
Explanation: Dividing budgeted indirect costs by the budgeted quantity of the allocation base gives the budgeted indirect cost rate.
Correct answer: budgeted indirect cost rate- A. sale costing system
- B. job costing system
- C. price costing system
- D. process costing system
Explanation: Process costing accumulates the total cost of similar or homogeneous products and divides it by units produced to obtain an average unit…
Correct answer: process costing system- A. proration approach
- B. appreciation approach
- C. depreciation approach
- D. adjusted approachCompare Credit Cards
Explanation: Proration distributes underallocated or overallocated overhead among work in process, finished goods, and cost of goods sold.
Correct answer: proration approach- A. unadjusted budget rate approach
- B. adjusted allocation rate approach
- C. unadjusted allocation rate approach
- D. adjusted budget rate approach
Explanation: Restating overhead entries using actual rates instead of budgeted rates is the adjusted allocation rate approach.
Correct answer: adjusted allocation rate approach- A. manufacturing overhead applied
- B. labor overhead applied
- C. cost overhead applied
- D. budget overhead appliedGet Executive Coaching
Explanation: In normal costing, manufacturing overhead is assigned to products using a predetermined overhead rate, so it is called manufacturing…
Correct answer: manufacturing overhead applied- A. $60
- B. $90
- C. $80
- D. $70
Explanation: The overhead rate is calculated as actual overhead divided by the allocation base: $225,000 ÷ 2,500 labor hours = $90 per labor hour.
Correct answer: $90- A. over allocated budget
- B. under allocated budget
- C. under allocated indirect cost
- D. over allocated direct costCompare Credit Cards
Explanation: When allocated indirect cost is less than the actual indirect cost incurred, the difference is underallocated indirect cost.
Correct answer: under allocated indirect cost- A. job cost record
- B. job cost sheet
- C. source document
- D. both a and b
Explanation: A job cost sheet or job cost record accumulates all direct materials, direct labour and applied overhead assigned to a particular job.
Correct answer: both a and b- A. cost
- B. job
- C. post
- D. price
Explanation: A job is a distinct unit of service or production, whether it consists of one unit or several identical units completed for a specific…
Correct answer: job- A. per unit cost
- B. per post cost
- C. per price cost
- D. application cost
Explanation: When similar units are produced, total cost is divided by the number of units to obtain an average cost per unit.
Correct answer: per unit cost- A. direct pool
- B. cost pool
- C. indirect pool
- D. item pool
Explanation: A cost pool is a group of related individual costs collected for later allocation to cost objects.
Correct answer: cost pool- A. incurred indirect cost
- B. over allocated indirect cost
- C. applied indirect cost
- D. applied direct cost
Explanation: When applied or allocated overhead exceeds the actual indirect cost incurred, overhead is over-allocated, also called overapplied…
Correct answer: over allocated indirect cost