Cost Accounts MCQs with Answers PDF Download – Test 202

The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as

1. stock-out costs
2. ordering costs
3. carrying costs
4. purchasing costs

In customer cost hierarchy, the costs of those activities that cannot be traced to distribution channels or individual customers are called

1. discretionary channel costs
2. corporate-sustaining costs
3. distribution-channel costs
4. engineered resource costs

The consideration of increased operating income relative to budgeted amount is classified as

1. favorable variance
2. unfavorable variance
3. revenue variance
4. cost variance

Total cost related to work in process inventory is divided by total units of work done is used to calculate

1. Gross weighted margin
2. weighted average revenue
3. weighted average cost
4. weighted average conversion cost

In overhead cost variance analysis, the fixed overhead does not include

1. efficiency variance
2. unfavorable variance
3. production volume variance
4. favorable variance