Home » Quizzes » Classifications of cost » Multiple choice questions (MCQs) quiz Classifications of cost Multiple choice questions (MCQs) quiz Posted in: Classifications of cost (quizzes) By: Rashid Javed | Updated on: August 25th, 2024 /22 Chapter: Accounting for consignmentQuiz type: Multiple choice questions (MCQs) quizNumber of questions: 30Estimated time required: 15 - 20 minutesPassing score: 60%Your result will be displayed at the end of the quiz. 1. A cost that is easily traceable to a particular cost object is known as: indirect cost variable cost direct cost fixed cost 2. A cost that is not easily or conveniently traceable to a cost object is known as: collective cost indirect cost additional cost conversion cost 3. Which of the following terms is used to denote the response of a cost to the change in business activity? Cost behavior Cost trend Cost response Cost accumulation 4. A cost that changes in total dollar amount with the change in the level of activity is known as: fixed cost mixed cost conversion cost variable cost 5. A cost that does not change in total with the change in activity is called: mixed cost fixed cost prime cost unchanged cost 6. Mixed cost is also known as: double cost semi-variable cost fluctuating cost full cost 7. According to cost formula Y = $20,000 + $4X, total cost at an activity level of 15,000 units would be: $20,000 $60,000 $80,000 $35,000 Y = $20,000 + $4XY = $20,000 + $4(15,000)Y = $20,000 + $60,000Y = $80,000 8. Which of the following costs is not a product cost? Depreciation on the plant installed in the factory The electricity cost of the office of factory foreman The cost of shipping finished products to customers The cost of fuel used in the factory 9. Which of the following costs is not a period cost? Advertising cost Sales commission Interest Direct labor 10. The costs incurred to acquire or manufacture a product is known as: Period costs Product costs Admin. costs Real costs 11. Prime cost = ? Manufacturing overhead cost + Direct labor cost Direct materials cost + Direct labor cost Direct materials cost + Manufacturing overhead cost Direct materials cost + Direct labor cost + Manufacturing overhead cost 12. Conversion cost = ? Direct labor cost + Manufacturing overhead cost Direct materials cost + Manufacturing overhead cost Direct materials cost + Admin. cost Direct materials cost + Marketing cost 13. Manufacturing cost = ? Direct materials cost + Manufacturing overhead cost Direct materials cost + Direct labor cost + Manufacturing overhead cost Direct materials cost + Direct labor cost + Manufacturing overhead cost + Marketing and admin cost Prime cost + Conversion cost 14. The cost of alternative ‘A’ is $25,000, and the cost of alternative ‘B’ is $20,000. In managerial accounting, the difference of $5,000 in costs of two alternatives would be termed as: additional cost extra cost differential cost essential cost 15. Which of the following costs is treated as indirect labor? Idle time Overtime premium Fringe benefits All of the above 16. The term quality cost refers to: the cost incurred to purchase expensive materials the cost incurred to purchase very high quality materials the cost incurred to higher highly skilled workers the cost incurred to prevent, detect and remove defects from products 17. The costs that are incurred to avoid defects at first place are known as: prevention costs appraisal costs internal failure costs external failure costs 18. Which of the following costs is an example of external failure cost? Statistical process control The cost of supplies used in testing Warranty repairs and replacement costs Rework labor and overhead 19. The benefit forgone when one alternative is selected over another is known as: the sunk cost the opportunity cost the differential cost the decision cost 20. Washington Company incurred $50,000 to ship 22,000 liters and $42,000 to ship 18,000 liters. If the company ships 20,000 liters, its expected shipping expense would be closest to: $40,000 $44,000 $46,000 $48,000 Variable expense rate:= ($50,000 - $42,000)/(22,000 - 18,000)= $8,000/$4,000= $2.00Fixed expenses:= $42,000 - (18,000 x 2)= $42,000 - $36,000= $6,000Expected expenses to ship 20,000 liters:= $6,000 + $2(20,000)= $6,000 + $40,000= $46,000 21. Which of the following terms refers to a cost that has already been incurred and cannot be changed by any decision? Past cost Previous cost Lost cost Sunk cost 22. Within the relevant range: both total variable costs and total fixed costs fluctuate both total variable costs and total fixed costs will remain constant variable costs per unit will remain constant and fixed costs per unit will fluctuate fixed costs per unit will remain constant and variable costs per unit will fluctuate 0% Restart quiz Help us grow by sharing our content ♡
Very good questions! Thank you!
warranty repairs are internal failure
very easy question. thank you
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