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WorksheetsREVISION OF CHAP 7,8,9 (PART 2)
Total questions: 13
Worksheet time: 7mins
Which of the following businesses is likely to adopt a process costing system?
Catering service companies.
Construction companies.
Oil refining companies.
Printing service companies.
In order to compute the equivalent units of production using the Weighted Average method of process costing, the following equation should be used:
Equivalent units of beginning work in process + units completed and transferred out.
Equivalent units of beginning work in process + equivalent units of ending work in process.
Units completed and transferred out + equivalent units of ending work in process.
Units completed and transferred out + equivalent units of beginning work in process.
What is the combination of the conversion costs?
Direct materials costs and direct labour costs.
Indirect materials costs and indirect labour costs.
Direct materials costs and manufacturing overhead costs.
Direct labour costs and manufacturing overhead costs.
The cost of the previous department is equal to ...
transferred-in cost.
transferred-out cost.
conversion cost.
direct material costs.
Following are the information in the Production Cost Report except:
Equivalent units.
Cost per equivalent unit.
Total costs.
Period costs.
Features of transferred-in cost in the Production Cost Report exist in the ...
first department.
second department.
all departments.
no department.
A method of calculating a product cost assuming both variable and fixed manufacturing costs as product cost refers to ...
Absorption Costing.
Marginal Costing.
Actual Costing.
Normal Costing.
Fixed manufacturing cost which is fixed overhead cost; will be treated as period cost in ...
Absorption Costing.
Marginal Costing.
Actual Costing.
Normal Costing.
Fixed manufacturing overhead cost is not an inventoriable element in ...
Standard Costing.
Normal Costing.
Absorption Costing.
Marginal Costing.
Product cost under Marginal Costing will include ...
all variable costs.
direct materials, direct labour and manufacturing overhead costs.
all manufacturing costs.
direct materials, direct labour and variable manufacturing overhead costs.
The difference in net profit between Absorption Costing and Marginal Costing is due to ...
variable manufacturing overhead costs.
fixed manufacturing overhead costs.
direct materials cost.
direct labour cost.
Which scenario results in the net profit under Absorption Costing to be equal to the net profit under Marginal Costing?
Unit produced is less than the unit sold.
Unit produced is equal to the unit sold.
Ending inventory unit is larger than the unit produced.
Unit produced is larger than the unit sold.
Below are the advantages of Absorption Costing except: -
It is complying with Generally Accepted Accounting Principles (GAAP).
It is suitable for external reporting.
The product cost will not be understated.
It is suitable for decision making and performance evaluation.
