Accounting MCQs with Answers
The third step in process costing system is to ____________?
A. summarize flow of output
B. compute output in units
C. summarize total costs
D. compute cost for each equivalent unit
The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called ____________?
A. conversion expense costing system
B. inventory costing system
C. process costing system
D. job costing system
Total cost related to work in process inventory is divided by total units of work done is used to calculate _____________?
A. Gross weighted margin
B. weighted average revenue
C. weighted average cost
D. weighted average conversion cost
In process and job costing system, the normal spoilage cost is considered as ___________?
A. conversion costs
B. sunk costs
C. inventoriable costs
D. non inventoriable costs
Which one of the following is an example of spoilage?
A. short lengths from wood work
B. defective aluminum cans recycled by manufacturer
C. detection of defective pieces before shipment
D. all of above
An amount of spoilage that is not natural in a specific production process is categorized as ____________?
A. normal scrap
B. normal spoilage
C. abnormal spoilage
D. weighted spoilage
The stage in production process, where the manufactured goods are checked; whether the units are acceptable or not is classified as __________?
A. rework point
B. inspection point
C. spoilage point
D. scrap point
An example of rework is ____________?
A. short lengths from wood work
B. defective aluminum cans recycled by manufacturer
C. detection of defective pieces before shipment
D. none of above
