Costing

✅ The correct answer is B.
In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate manufacturing overhead applied.

✅ The correct answer is B.
Weak relationship between cost and cost driver is indicated on a regression line, which is slightly sloped.

✅ The correct answer is B.
The order in which the budget should be prepared are Sales budget, Finished goods inventory Production budget, Purchase budget and Cash budget.

✅ The correct answer is B.
Allotment of whole item of cost to a cost centre or cost unit is known as Cost Allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

✅ The correct answer is B.
First step in estimation of cost function by using quantitative analysis is to choose dependent variable. A dependent variable is what you measure in the experiment and what is affected during the experiment. The dependent variable responds to the independent variable. It is called dependent because it “depends” on the independent variable.

✅ The correct answer is A.
In estimation of cost functions, variations in a single activity level represents the related total costs. Total cost refers to the aggregation of all types of costs related to a cost object, which means fixed costs, variable costs, and mixed costs.

✅ The correct answer is B.
Weighted average cost = Cost incurred for work in process inventory ÷ Total equivalent units completed
= $350000 ÷ 3500 = $100

✅ The correct answer is B.
An amount of spoilage that is natural in any particular production process is classified as normal spoilage. Normal spoilage refers to the inherent worsening of products during the production or inventory processes of the sales cycle.

✅ The correct answer is C.
According to incremental method, party which receives highest ranking in allocation of common cost is classified as primary party.

✅ The correct answer is B.
“FIFO” stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold. In other words, the cost associated with the inventory that was purchased first is the cost expensed first.