Costing - Study Mode
[#601] Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as
Correct Answer
(A) continuously variable cost function
Explanation
Solution: Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as continuously variable cost function. A variable cost is a corporate expense that changes in proportion to production output.
[#602] Range, in which relationship exists between level of activity or total cost is called
Correct Answer
(B) relevant range
Explanation
Solution: Range, in which relationship exists between level of activity or total cost is called relevant range. Relevant range is a level of volume or activity within which a company is expected to operate.
[#603] If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be
Correct Answer
(A) $168,750
Explanation
Solution: Annual indirect cost (budgeted) = Budgeted indirect cost × Budgeted cost allocation = $225 × $750 = $168,750
[#604] If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be
Correct Answer
(D) 89.72%
[#605] Total cost of producing similar products divided by number of units produced is a technique known as
Correct Answer
(D) process costing system
Explanation
Solution: Total cost of producing similar products divided by number of units produced is a technique known as process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.