Process Costing System MCQs with Answers PDF Download – Test 22

MCQ 106: The total costs incur in a production process, is divided by total number of output units, to calculate the:

1. cost of indirect labor
2. cost of direct labor
3. cost of direct material
4. unit costs

MCQ 107: The process of ensuring preventive measure to be done in all machines is classified as:

1. potential price response
2. potential cost response
3. potential budget response
4. potential management response

MCQ 108: If the number of employees who left the job are 40, the total number of employees are 200, then the employee turnover ratio will be:

1. 0.6
2. 0.5
3. 0.2
4. 0.7

MCQ 109: If an actual cost incurred is $627500, the flexible budget amount is $358750, then fixed overhead variance of flexible-budget will be:

1. $218,750
2. $238,750
3. $258,750
4. $268,750

MCQ 110: 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