Question

Question: 1

"Normal costing" involves:

a) Using budgeted cost allocation rates for direct costs and actual costs for indirect costs.

b) Using budgeted cost pools for both direct and indirect costs.

c) Using budgeted cost allocation rates for indirect costs and actual costs direct costs.

d) using budgeted cost allocation rates for both direct and indirect costs.

Question: 2 Costs that are " similar in nature" and/or " driven by the same factor" are accumulated in a:

a) spreadsheet

b) cost object

c) cost pool

d) cost function

Question: 3 In a large corporation, the controller is typically responsible for:

a) Risk management.

b) All listed answers are correct.

c) Accounting information

d) Audit

e) Tax

Question: 4 "ABC" costing can lead to the following benefits

a) improved pricing decisions

b) all of the listed answers are correct

c) improved understanding of production processes

d) improved "indirect costing" accuracy.

please answer these question fast. thanks

Answer 1

Solution 1:

"Normal costing" involves: "Using budgeted cost allocation rates for indirect costs and actual costs direct costs."

Hence option C is correct.

Solution 2:

Costs that are " similar in nature" and/or " driven by the same factor" are accumulated in a "Cost Pool"

Hence option c is correct.

solution 3:

In a large corporation, the controller is typically responsible for:

a) Risk Management

b) Accounting information

c) Audit

d) Tax

Hence option b "All listed answers are correct" is correct.

Solution 4:

"ABC" costing can lead to the following benefits:

a) improved pricing decisions

b) improved understanding of production processes

c) improved "indirect costing" accuracy.

Hence option b "all of the listed answers are correct" is correct.