Practice Test

Q1) ______uses multiple activity rates. Show Answer

Q2) Performing periodic maintenance on general use equipment is an example of a__________ Show Answer

Q3) Company X uses activity-based costing for its two products: Product B and Product D : One of the activity cost pools is parts administration. The total estimate overhead cost for that pool was Rs 5,50,000 and the expected activity was 2,000 part types. If product requires 1,200 part types, the amount of overhead allocated to it would be : Show Answer

Q4) Company B uses activity-based costing and has the following activity cost pools and estimated overhead cost for each pools:Machine related Rs. 3,50,000 , Handling material Rs.2,40,000 , Processing purchase orders 7,20,000 , General factory Rs. 5,00,000. The amount of total estimated overhead is : Show Answer

Q5) Activity based costing is a ____________ Show Answer

Q6) Objective ABC are: Show Answer

Q7) Terminology of ABC are: Show Answer

Q8) The area in which activity based information is used for decision making are: Show Answer

Q9) Limitation of ABC are : Show Answer

Q10) In an ABC system, the allocation basis that are used for applying costs to service or produces are called _______ Show Answer

Q11) Activity cost driver rate: Show Answer

Q12) Cost are caused by a group of things being made, handled or processed at a single time are referred to as _________ Show Answer

Q13) Overheads are first related to department cost centres: Show Answer

Q14) It is an item for which cost measurement is required. Show Answer

Q15) Cost drivers type of___ Show Answer

Q16) Activity based costing relates cost to : Show Answer

Q17) In Activity Based Costing, costs are accumulated by : Show Answer

Q18) The appropriate Cost driver for maintenance of cost pool is number of: Show Answer

Q19) Activity based costing is defined as cost attribution to_____ on the basis of benefit received from indirect activities. Show Answer

Q20) Under ABC system, the aggregate of closely related tasks is known as ___________ Show Answer

Q21) The point of focus for the costs costs relating to a particular activity in Activity Based Costing system is known as : Show Answer

Q22) The method in which cost attribution to cost units on the basis of benefits received from indirect activities is known as: Show Answer

Q23) ______ deals with collection. recording, analysis, controlling and reporting of activity related costs rather than department or cost centre related costs. Show Answer

Q24) Cost pools under ABC are similar to _____ in traditional cost system. Show Answer

Q25) _______ is the reason for performing an activity. Show Answer

Q26) ______ costing is beneficial to the complex and large organization. Show Answer

Q27) The cost objects are linked to the objective of the organization. Show Answer

Q28) ____are used to trace costs to products by using a measure of resources consumed by each activity. Show Answer

Q29) Out of the following, Non-value added activity is : Show Answer

Q30) Cost of maintaining a building is ________ Show Answer

Q31) _______Should be subtracted from net product revenues instead of an arbitrary and illogical apportionment. Show Answer

Q32) In traditional absorption costing system which of the following type of activities are identified? A- Unit Level Activities B- Batch Level Activities C- Product Level Activities D - Facility Level Activities Show Answer

Q33) In an activity - based costing system, direct materials used would typically be classified as a ____________ Show Answer

Q34) Basic types of cost pool allocations include__________ Show Answer

Q35) Of the following organizations, activity based costing can be used _____________ Show Answer

Q36) All of the following are examples of product-level activities except:______________ Show Answer

Q37) Which of the following is a limitation of activity based costing ? Show Answer

Q38) Which costing system will trace the most costs as direct costs? Show Answer

Q39) All of the following are part of the based cost system hierarchy except for _________ Show Answer