Labor which is related to manufacturing of product is classified as

A. direct manufacturing labor costs

B. indirect manufacturing labor costs
C. work in process cost
D. finished costs

Direct material costs are added into direct manufacturing costs for calculating are

A. discuss costs
B. prime costs
C. resale cost
D. merchandise costs

Direct manufacturing labor costs is added to manufacturing overhead cost for

calculating

A. transaction costs
B. conversion costs
C. resale costs
D. merchandise costs

In cost terms, direct manufacturing labor cost is included in

A. manufacturing costs
B. prime costs
C. conversion costs
D. Both B and C

Conversion cost is $20000 and manufacturing overhead cost is $7000 then direct
manufacturing labor cost will be

A. $27,000
B. $13,000
C. $130,000
D. $29,500

Direct service labor is $7000, idle time wages are $2000 and overtime premium is
$950 then total figure would be

A. $5,850
 B. $5,950
C. $9,950
D. $10,050

Two terms in manufacturing cost systems are

A. manufacturing costs
B. prime costs
C. conversion costs
D. Both B and C

Direct service labor is $5000, idle time wages are $1000 and overtime premium is
$450 then total figure would be

A. $4,450
B. $6,450
C. $21,500
D. $14,300

In income statement, when costs become cost of sold goods and manufactured
products are sold are classified as

A. inventoriable costs
B. finished costs
C. factory overhead costs
D. manufacturing overhead costs

Calculation of product cost, gathering information for planning and analyzing

information for decisions making are features of

A. information accounting
B. cost accounting
C. analyzing accounts
D. marketing costs

Prime cost is $50000 and direct manufacturing labor is $10000 then direct material
cost will be

A. $40,000
B. $60,000
C. $52,000
 D. $20,000

An inventory which consists of partially worked goods or work in progress is called

A. direct materials inventory

B. work in process inventory
C. finished goods inventory
D. indirect material inventory

In balance sheet, all costs of product that must be considers as assets in it and it is
said to be

A. factory overhead costs

B. manufacturing overhead costs
C. Inventoriable costs
D. finished costs

Direct material cost is $75000 and direct manufacturing labor is $20000 then prime
cost would be

A. $55,000
B. $37,500
C. $95,000
D. $26,000

Period cost consists of in income statement of manufacturing companies

A. inventory costs
B. product costs
C. non-manufacturing costs
D. manufacturing costs

An acquisition cost of raw material to be used in manufacturing and become

component of cost object is classified as

A. direct material costs

B. indirect material costs
C. direct labor costs
D. indirect labor costs
Wages and other benefits are provided to assembly line workers and operators of
machine is classified as

A. work in process cost

B. finished costs
C. direct manufacturing labor costs
D. indirect manufacturing labor costs

Conversion cost is subtracted from manufacturing overhead cost to calculate

A. manufacturing labor costs

B. direct labor costs
C. direct manufacturing labor costs
D. indirect manufacturing labor costs

Labor which works as forklift truck, plant guards and rework labor is classified as

A. prime overhead
B. conversion overhead
C. factory overhead
D. manufacturing overhead

Inventory of final goods that are not yet sold is called

A. finished goods inventory

B. indirect material inventory
C. direct materials inventory
D. work in process inventory

Costs which are considered as expenses in accounting period are classified as

A. inventory costs
B. period costs
C. timed costs
D. labor overheads

Health care premium for workers and pension costs are included in

A. payroll fringe costs

B. health costs
C. premium costs
 D. workers costs

All costs are assigned to manufactured products for specific calculations are
classified as

A. contracting costs
B. product cost
C. government costs
D. marketing costs

Direct material cost is $5500 and prime cost is $25000 then direct manufacturing
labor would be

A. $19,500
B. $30,500
C. $45,500
D. $22,500

Direct manufacturing labor costs is $40000 and manufacturing overhead cost is

$7000 then conversion cost would be

A. $47,000
B. $33,000
C. $57,000
D. $18,000

Direct material cost is $85000 and direct manufacturing labor is $25000 then prime
cost would be

A. $13,500
B. $55,600
C. $60,000
D. $110,000

In costing of project, wages are paid to workers for unproductive work at time of
material shortage is classified as

A. indirect wages
B. health wages
C. idle time wages
D. shortage time wages
Conversion cost is subtracted from direct manufacturing labor cost to calculate

A. direct overheads
B. overhead costs
C. factory overhead
D. manufacturing overhead cost

An inward delivery charges and custom duties are classified as

A. direct labor costs

B. indirect labor costs
C. direct material costs
D. indirect material costs

An approach in which company under-cost its one product and it’s over-cost at least
one product is classified as

A. service-cost across subsidizing

B. product-price cross subsidizing
C. product-cost cross subsidizing
D. product cross subsidizing

Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost
allocation base to calculate

A. budgeted direct cost rate

B. budgeted indirect cost rate
C. expected indirect cost rate
D. direct budget percentage

In an activity based cost system, an activity, unit of work or task with differentiated
purposes is classified as

A. different task
B. purpose cost
C. an activity
D. an allocation cost

Costs of all activities for individual products or services are classified as

A. purpose level costs

 B. output-unit level costs
C. input-unit level costs
D. activity level costs

In activity based costing implementation, product's diverse demand is based on

A. batch size
B. complexity
C. process steps
D. All of Above

Broad averages used to assign cost of revenue to cost objects is classified as

A. refined costing system

B. refined selling system
C. undefined costing
D. defined selling system

Costs of all activities for a group of products rather than individual product are
classified as

A. activity level costs

B. input level costs
C. batch level costs
D. output level costs

Product which requires low amount of resources but incur high per unit cost is
classified as

A. expected under cost

B. expected over cost
C. product under costing
D. product over costing

In activity based costing system, description of activity is classified as

A. activity list
B. activity dictionary
C. active purpose
D. both a and b
Factors that accelerate process of refining a costing system include

A. increase in product diversity

B. increase in indirect costs
C. product market competitions
D. All of Above

Cost pool category which have similar cause and effect relationship with each cost
driver uses as an allocation base is classified as

A. heterogeneous price pool

B. homogenous cost pool
C. heterogeneous cost pool
D. homogenous price pool

In activity based costing method implementation, indirect costs are allocated by

using the

A. no cost pool
B. one or two cost pools
C. sustained tracing
D. support tracing

Costing system in which individual activities are identified as cost object is

considered as

A. manufactured costing
B. activity based costing
C. allocation costing
D. base costing

Type of costs that cannot be traced for individual products but help in supporting an
organization are classified as

A. individual sustaining costs

B. facility sustaining costs
C. sustained tracing
D. support tracing

In activity based costing method implementation, an output unit level costs are
classified as
 A. indirect costs
B. direct cost
C. labor cost
D. raw material cost

Hierarchy which is based on different types of cost allocation and drivers to

categorize cost pool activity is classified as

A. cost hierarchy
B. price hierarchy
C. activity hierarchy
D. purpose hierarchy

Product which requires large amount of resources but incur low per unit cost is
classified as

A. product under costing

B. product over costing
C. expected under cost
D. expected over cost

Costs of undertaken activities to support individual products are classified as

A. expected sustaining
B. input sustaining
C. output sustaining
D. product sustaining costs

Cost which is related to specific cost object and economically traceable is classified
as

A. direct cost
B. indirect cost
C. line cost
D. staff cost

Material or anything for which cost is to be measured is classified as

A. measurement object
B. cost object
C. accounting object
 D. budget object

Cost which is changed in proportion to level total volume is classified as

A. fixed cost
B. variable cost
C. total cost
D. infeasible cost