Costing - Study Mode

[#836] Material control involves ________.
Correct Answer

(D) purchase, storage and issue of material

Explanation

Solution: Material control involves purchase, storage and issue of material. Materials control is the systematic control over the materials at all its stages procurement, storage and usage so as to help in maintaining regular and uninterrupted flow of the materials in the production pipeline.

[#837] In accounting system, a document which consists of all assigned cost for specific job is classified as
Correct Answer

(D) both a and b

Explanation

Solution: In accounting system, a document which consists of all assigned cost for specific job is classified as job cost record and job cost sheet.

[#838] Manufacturing overhead cost allocated to individual jobs is classified as
Correct Answer

(D) both A and C

Explanation

Solution: Manufacturing overhead cost allocated to individual jobs is classified as manufacturing overhead allocated and manufacturing overhead applied.

[#839] If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be
Correct Answer

(B) 113.33 per piece

Explanation

Solution: Budgeted indirect cost = Budgeted annual indirect cost ÷ Budgeted annual quantity of cost allocation base = $850000 ÷ $7500 = 113.33 per piece

[#840] Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as
Correct Answer

(C) under allocated indirect cost

Explanation

Solution: Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.