Costing

✅ ANSWER: A
A joint cost allocation method is based on relative value of total sales, at point of split off is classified as sales value at split off method. The split-off point is the point at which joint production stops and processing for separate products begins.

✅ ANSWER: D
The physical distance covered by a vehicle is measured in terms of running kilometers or miles.

✅ ANSWER: C
Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called bundled product. A bundled product is a package of two or more stand-alone products sold together for a single cost.

✅ ANSWER: A
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.

✅ ANSWER: A
Re-order level is calculated as Maximum consumption x Maximum re-order period. To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.

✅ ANSWER: B
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.

✅ ANSWER: A
Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate cost per good units transferred out.

✅ ANSWER: B
Standard error of regression analysis is known as variance of residual. It is also called unexplained variance.

✅ The correct answer is D.
In stand-alone revenue-allocation method, type of weights available for this method is selling prices as weight, unit costs as weights and physical units as weights.

✅ The correct answer is C.
Units cost = Total incurred cost in a production process ÷ Number of output units
= $30000 ÷ 5000 = $6