Costing mcqs

✅ The correct answer is B.
Conversion cost includes cost of converting Raw material into Finished goods. There are two main components of conversion costs: direct labor and manufacturing overheads.

✅ The correct answer is B.
Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.

✅ The correct answer is B.

✅ The correct answer is A.
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as weighted average method. The Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS.

✅ The correct answer is A.
Insurance and garage rent is fixed charges. A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business.

✅ The correct answer is A.
First step in process costing system is to summarize flow of output. Flow is more inline with the concept of a function, that is, a Flow has both input and output parameters.

✅ The correct answer is D.
An under allocated indirect cost is also called under applied indirect cost and under absorbed indirect cost.

✅ The correct answer is A.
If the actual loss is more than the estimated normal loss, then it is abnormal loss. Abnormal loss is the extra loss resulting when actual loss is greater than normal or expected loss, and it is given a cost.

✅ The correct answer is D.
In accounting system, a document which consists of all assigned cost for specific job is classified as job cost record and job cost sheet.

✅ The correct answer is D.
In accounting, resources sacrifice for achieving or fulfil specific objective is known as cost. Cost is the monetary value that a company has spent in order to produce a product.