Costing - Study Mode

[#1011] Under marginal costing, only . . . . . . . . costs are charged to products.
Correct Answer

(B) variable

[#1012] . . . . . . . . represents that quantity of material which is normally ordered when a particular material reaches re-ordering level.
Correct Answer

(D) Re-order quantity

[#1013] Difference between budgeted amounts and actual results is classified as
Correct Answer

(B) variances

Explanation

Solution: Difference between budgeted amounts and actual results is classified as variances. Variance is a measurement of the spread between numbers in a data set. The variance measures how far each number in the set is from the mean.

[#1014] A manager who is responsible for only cost of company belongs to
Correct Answer

(A) cost center

Explanation

Solution: A manager who is responsible for only cost of company belongs to cost center. A cost center is a department within an organization that does not directly add to profit but still costs the organization money to operate.

[#1015] A manager, who is responsible for both cost and revenues belongs to department of
Correct Answer

(C) profit center

Explanation

Solution: A manager, who is responsible for both cost and revenues belongs to department of profit center. A profit center is a branch or division of a company that directly adds to the corporation's bottom-line profitability.