WorksheetsUPS 3 REVISION QUESTION SESSION 2021/2022
Total questions: 15
Worksheet time: 8mins
Which of the following items is NOT characteristic of a process costing system?
Once production begins, it continues until the finished product emerges
The products produced are heterogeneous in nature
The focus is on continually producing homogeneous products
When the finished product emerges, all units have precisely the same amount of materials, labour and overhead
In a process cost system, the flow of cost is:
work in process, cost of goods sold, finished goods
finished goods, work in process, cost of goods sold
finished goods, cost of goods sold, work in process
work in process, finished goods, cost of goods sold
A process cost system would be used for all of the following products except
chemicals.
computer chips.
motion pictures.
soft drinks.
In a process cost system, a production cost report is prepared
only for the first processing department.
for all departments in the aggregate.
for each processing department.
only for the last processing department.
Costs that were incurred in a previous department that are brought into this department as part of a product's cost are
Transferred-in costs
Transferred-out costs
Costs to account for
Costs accounted for
What is the key difference between Absorption Costing and Marginal Costing?
Absorption Costing treats Manufacturing Overhead as a period cost.
Marginal Costing treats Fixed Manufacturing Overhead as a period cost.
Absorption Costing only considers variable costs to calculate net income.
Marginal Costing only considers variable costs to calculate net income.
Which scenario results in the Net Income under Absorption Costing to be greater than the Net Income under Marginal Costing?
No beginning inventory unit and no ending inventory unit.
Unit produced is less than unit sold.
Unit produced is equal to unit sold.
Unit produced is greater than unit sold.
"A costing approach in which only variable manufacturing costs are product costs and fixed manufacturing costs are period costs (expenses)." This statement best describe...
Absorption Costing
Marginal Costing
Normal Costing
Actual Costing
"A costing approach in which all manufacturing costs are product costs." This statement best describe...
Absorption Costing
Marginal Costing
Normal Costing
Actual Costing
Which of the following costs is not included while computing unit product cost under variable costing?
Direct materials cost
Direct labor cost
Variable manufacturing overhead cost
Fixed manufacturing overhead cost
Manufacturing overhead:
can be either a variable cost or a fixed cost.
includes the costs of shipping finished goods to customer s
includes all factory labor costs.
includes all fixed costs.
Which of the following costs is not included while computing unit product cost under variable costing?
Direct materials cost
Direct labor cost
Variable manufacturing overhead cost
Fixed manufacturing overhead cost
Conversion costs are the sum of:
Fixed and variable overhead costs
labour costs and overhead costs
Direct material costs and overhead costs
Direct labour and indirect labour costs
Marginal or Variable costing is the most useful costing technique for the…
Shareholders
Management
Auditors
Creditors
Which costing method is used to help with decision making?
Absorption costing
Marginal costing
Activity based costing
Standard costing
