Costing - Study Mode
[#741] Factors that accelerate process of refining a costing system include
Correct Answer
(D) all of above
Explanation
Solution: Factors that accelerate process of refining a costing system include increase in product diversity, increase in indirect costs and product market competitions.
[#742] Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as
Correct Answer
(B) homogenous cost pool
Explanation
Solution: Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous cost pool. A cost pool is a grouping of individual costs, typically by department or service center.
[#743] In activity based costing method implementation, indirect costs are allocated by using the
Correct Answer
(B) One or two cost pools
Explanation
Solution: In activity based costing method implementation, indirect costs are allocated by using the One or two cost pools. Cost pools are commonly used for the allocation of factory overhead to units of production, as required by several accounting frameworks.
[#744] Costing system, in which individual activities are identified as cost object is considered as
Correct Answer
(B) activity based costing
Explanation
Solution: Costing system, in which individual activities are identified as cost object is considered as activity based costing. The ABC system of cost accounting is based on activities, which is any event, unit of work, or task with a specific goal, such as setting up machines for production, designing products, distributing finished goods, or operating machines.
[#745] Type of costs that cannot be traced for individual products but help in supporting an organization are classified as
Correct Answer
(B) facility sustaining costs
Explanation
Solution: Type of costs that cannot be traced for individual products but help in supporting an organization are classified as facility sustaining costs.