Costing mcqs

✅ The correct answer is D.
Joint cost allocation method for joint products, which is based on achievable value is known as net realizable value method. The net realizable value method allocates joint costs on the basis of the final sales value less separable costs.

✅ The correct answer is B.
Direct material costs are added into direct manufacturing costs to calculate prime costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production.

✅ The correct answer is B.
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate conversion costs. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.

✅ The correct answer is D.
In income statement of merchandising costs, period cost includes all costs which are not related to cost of purchased goods. The cost of goods purchased is the net cost of merchandise acquired.

✅ The correct answer is D.
Any output that has total positive sales is a joint product, main product and product.

✅ The correct answer is C.
Collection of cost data, according to accounting system in an organized way is classified as cost accumulation. Cost accumulation involves the use of a formal cost accounting system to collect cost information.

✅ The correct answer is D.
Stage in manufacturing cycle at which journal entries are made in system of accountancy is known as trigger point. Trigger points are established to align with a company’s Vital Factors, the specific, key indicators of a business’ health.

✅ The correct answer is A.
Factor used to predict dependent variable is named as independent variable. An independent variable is the variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.

✅ The correct answer is D.
Repeated distribution method is not a method of cost absorption. Absorption costing is a method for accumulating the costs associated with a production process and apportioning them to individual products.

✅ The correct answer is B.
Separation Method

Labour Turnover = No. of workers left or separated during a period / Average number of workers on role during that period x 100

Replacement Method

Labour Turnover = No. of workers replaced during a period / Average number of workers on role during that period x 100

Flux Method

Labour Turnover = (No.of workers separated in a period + No. of workers replaced in the same period) / Average number of workers on role during that period x 100

Note : Average No.of. Workers = (No. of workers at the beginning of the period + No. of workers at the end of the period) / 2