Costing mcqs

✅ The correct answer is D.
Job costing method is the most suitable method for repair shops. A job costing system is used by companies that produce unique products or jobs.

✅ The correct answer is C.
Total direct labour cost = Budgeted direct labour hours × Direct labour cost rate
= 4550 × $600 = $2,730,000

✅ The correct answer is A.
Bonus under Halsey plan is paid at 50% of time saved. The usual bonus share paid to the worker is 50% of the time saved multiplied by the rate per hour (time-rate).

✅ The correct answer is B.

✅ The correct answer is B.
Costs which are considered as expenses in accounting period are also known as period costs. A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets.

✅ The correct answer is B.
Better fit between estimated cost and actual observations is represented by smaller residual terms.

✅ The correct answer is B.
Budget production = Budget sales + Ending inventory – Beginning inventory
= 2000 + 3000 – 1000 = 4000 units.

✅ The correct answer is A.
Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage. Abnormal spoilage is the amount of waste or destruction of inventory beyond what is expected in normal business processes.

✅ The correct answer is B.
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.

✅ The correct answer is A.
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as direct material costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing.