Common Costs MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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