Activity Based Costing Systems Multiple Choice Questions with Answers – PDF Download

MCQ 1: In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as:

1. different task
2. purpose cost
3. an activity
4. an allocation cost

MCQ 2: In activity based costing system, the description of activity can be classified as:

1. activity list
2. activity dictionary
3. active purpose
4. both a and b

MCQ 3: The factors that accelerate the process of refining a costing system include:

1. increase in product diversity
2. increase in indirect costs
3. product market competitions
4. all of above

MCQ 4: In the activity based costing method implementation, the indirect costs are allocated by using the:

1. no cost pool
2. One or two cost pools
3. sustained tracing
4. support tracing

MCQ 5: The costing system, in which individual activities are identified as the cost object, is considered as:

1. manufactured costing
2. activity based costing
3. allocation costing
4. base costing