(A) Time rate system
(B) Piece rate system
(C) Halsey premium plan
(D) Both time rate and piece rate system
Tag: Financial Accounting Mcqs
The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
(A) First to be allocated to the ending inventory
(B) Last to be allocated to the cost of goods sold
(C) Last to be allocated to the ending inventory
(D) First to be allocated to the cost of goods sold
The components of total factory cost are:
(A) Direct Material + Direct Labor
(B) Direct Labor + FOH
(C) Prime Cost only
(D) Prime Cost + FOH
Under perpetual Inventory system the Inventory is treated as:
(A) Assets
(B) Liability
(C) Income
(D) Expense
The cost that is subject to actual payment or will be paid for in future is called:
(A) Fixed cost
(B) Step cost
(C) Explicit cost
(D) Imputed cost
The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:
(A) Normal capacity
(B) Designed capacity
(C) Direct Labor hours
(D) Machine hours
Over applied FOH will always result when a predetermined FOH rate is applied and:
(A) Production is greater than defined capacity
(B) Actual overhead costs are less than budgeted
(C) Budgeted capacity is less than normal capacity
(D) Actual overhead incurred is less than applied Overhead
The term cost allocation is described as:
(A) The costs that can be identified with specific cost centers.
(B) The costs that cannot be identified with specific cost centers.
(C) The total cost of factory overhead needs to be distributed among specific cost centers.
(D) None of the given options