Cost Accounts MCQs with Answers PDF Download – Test 202

MCQ 1006: 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

MCQ 1007: 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

MCQ 1008: 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

MCQ 1009: 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

MCQ 1010: In overhead cost variance analysis, the fixed overhead does not include:

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