MBA Cost Accounting MCQs - Chapter 15

Department Costs, Common Costs and Revenues Multiple Choice Questions (MCQ) PDF - 4

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Department Costs, Common Costs & Revenues Questions & Answers PDF Download: MCQ Quiz 4

MCQ 16: The department which directly adds value to product or service is known as

A) production department

B) operating department

C) allocation base department

D) both a and b

MCQ 17: According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as

A) Third incremental party

B) second incremental party

C) primary party

D) First incremental party

MCQ 18: The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

A) step down allocation method

B) stand-alone revenue allocation method

C) incremental revenue allocation method

D) revenue mix allocation method

MCQ 19: The method, which allocates cost of support department for operating departments by recognizing all the mutual services provided is classified as

A) indirect method

B) direct method

C) step down method

D) reciprocal method

MCQ 20: The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called

A) step down product

B) dual mix product

C) bundled product

D) reciprocal product

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