Budget Indirect Costs and End of Financial Year MCQ (Multiple Choice Questions) PDF Download

In normal costing, the situation in which the allocated amount of indirect cost is greater than the incurred cost, is considered as

1. incurred indirect cost
2. over allocated indirect cost
3. applied indirect cost
4. applied direct cost

An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as

1. unadjusted allocation rate approach
2. adjusted budget rate approach
3. unadjusted budget rate approach
4. adjusted allocation rate approach

The costing and allocating situation, in which the indirect cost allocated amount is less than actually incurred amount is known as

1. over allocated budget
2. under allocated budget
3. under allocated indirect cost
4. over allocated direct cost

An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called

1. unadjusted budget rate approach
2. adjusted allocation rate approach
3. unadjusted allocation rate approach
4. adjusted budget rate approach

In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as

1. over allocated budget
2. under allocated budget
3. under allocated indirect cost
4. over allocated direct cost