Costing mcqs

✅ The correct answer is B.
Defective aluminium cans recycled by manufacturer is an example of spoilage. Spoilage is waste or scrap that occurs during the manufacturing process.

✅ The correct answer is A.
In Kaizen budgeting, costs are based on all improvements which is to be implemented. Kaizen budgeting takes the concept of continual improvement and applies it to budgets and budget forecasting.

✅ The correct answer is A.
Halsey premium plan is individual incentive scheme. Under Halsey plan minimum wages are guaranteed to every worker. A standard time is fixed for the workers. If the workers finish the work before standard time they are given bonus.

✅ The correct answer is A.
According Last In First Out method of pricing issues is close to current economic values. LIFO Accounting means inventory which was acquired last would be used up or sold first.

✅ The correct answer is D.
Annual relevant ordering cost
= (18000 ÷ (1500/150 × 100)) = $180

✅ The correct answer is B.
An act of making sure, that all employees must understand goals is classified as communication. Communication is simply the act of transferring information from one place, person or group to another. Every communication involves (at least) one sender, a message and a recipient.

✅ The correct answer is A.
Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as residual term.

✅ The correct answer is B.
Goodness of fit is used to measure wellness of predicted values. The goodness-of-fit is a measure of how well the fitted PF accounts for the data.

✅ The correct answer is B.
Value of sales considers sales value at split off method is of entire production of accounting period. The split-off point is the point at which joint production stops and processing for separate products begins. The relative-sales-value method allocates costs based on the relative sales value of each resulting from a joint-production process.

✅ The correct answer is A.
In cost accounting, conference, quantitative analysis and account analysis methods are considered as cost estimation methods. Cost estimation methods provide a way for companies to anticipate the costs involved in business operations and new undertakings.