Job Costing Multiple Choice Questions (MCQ) PDF - 2

MCQ 6: An under allocated indirect cost is also called

1. under applied indirect cost
2. under absorbed indirect cost
3. absorbed indirect cost
4. both a and b

MCQ 7: 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

MCQ 8: A group of individual indirect cost item is defined as

1. direct pool
2. cost pool
3. indirect pool
4. item pool

MCQ 9: The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate

1. actual manufacturing overhead rate
2. manufacturing overhead costs
3. overhead rate
4. direct rate

MCQ 10: 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