Indirect Costs Allocation Quiz with Answers PDF Download – Test 209

MCQ 1041: If an allocated indirect cost is $1500 and the actual incurred indirect cost is $1200, then this is classified as:

1. applied indirect cost
2. applied direct cost
3. incurred indirect cost
4. over allocated indirect cost

MCQ 1042: The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as:

1. bundled products allocation method
2. variable cost allocation method
3. stand-alone cost allocation method
4. incremental cost allocation method

MCQ 1043: If an unexplained variation is 350050 and the total variation is 700505, then coefficient of determination would be:

1. 3
2. 0.5003
3. 0.7003
4. 2

MCQ 1044: If an actual result in static budget is $2500 and the corresponding budgeted amount is $2200, then the static budget variance will be:

1. $3,000
2. $300
3. $4,700
4. $4,500

MCQ 1045: The system which measures the budget, action and plan of each responsibility center is known as:

1. budgeted accounting
2. action accounting
3. planned accounting
4. responsibility accounting