Common Costs Multiple Choice Questions with Answers – PDF Download

MCQ 1: The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as:

1. bundled products allocation method
2. variable cost allocation method
3. stand-alone cost allocation method
4. incremental cost allocation method

MCQ 2: In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as:

1. First incremental user
2. primary user
3. secondary user
4. second incremental user

MCQ 3: The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as:

1. bundled cost
2. common cost
3. stand-alone cost
4. incremental cost

MCQ 4: The cost object user, who is ranked first in incremental cost allocation method is known as:

1. First incremental user
2. primary user
3. secondary user
4. second incremental user

MCQ 5: According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as:

1. Third incremental party
2. second incremental party
3. primary party
4. First incremental party