Costing mcqs

✅ The correct answer is D.
In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as First-in, first-out method.

✅ The correct answer is A.
Cost is the value of economic resources used as a result of producing or doing the thing costed. Cost is ascertained by cost centres or cost units or by both.

✅ The correct answer is B.

✅ The correct answer is A.
Product which requires large amount of resources, but incur low per unit cost is classified as product under costing. Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead.

✅ The correct answer is C.
An example of rework is detection of defective pieces before shipment. Rework refers to the correction of a product that does not initially meet an entity’s minimum quality standards.

✅ The correct answer is B.
If value of final sales is $48000 and net realizable value is $35000, then value of sales costs would be $13,000.
Sales Cost = Final Sales – Net Realizable Value.
= $48000 – $35000 = $13000.

✅ The correct answer is D.
Residual term is also considered as error term and disturbance term.

✅ The correct answer is B.
Work measurement method of cost estimation is also called industrial engineering method. Industrial engineering method is a physical way of examining the relationship between cost drivers and costs by analyzing the inputs coming into the company, the outputs that are created, and the work that goes into the process.

✅ The correct answer is A.
Process of tracing direct costs and allocation of indirect costs is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.

✅ The correct answer is B.
Financial statements and budget plans of some companies are also called preformed statement.