Period Costs Notes Questions with Answers PDF Download – Test 207

MCQ 1031: In the income statement of merchandising costs, the period cost includes all costs which are not related to:

1. cost of resale goods
2. cost of manufacturing goods
3. timed resale of goods
4. cost of purchased goods

MCQ 1032: If the static budget variance is $38000 and the static budget amount is $12000, then an actual result would be:

1. $36,000
2. $60,000
3. $26,000
4. $50,000

MCQ 1033: If the net realizable value is $20000 and the separable costs are $18000, then the final sales will be:

1. $20,000
2. $18,000
3. $2,000
4. $38,000

MCQ 1034: The process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as:

1. revenue allocation
2. revenue object
3. revenue increment
4. reciprocal revenue

MCQ 1035: Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be:

1. $2,078,000
2. $3,078,000
3. $2,065,000
4. $3,065,000