Costing Methods in Cost Accounting MCQs - Finance Study Pool

Costing Methods in Cost Accounting  MCQs

Various costing methods are used to determine the cost of producing goods or services. These methods help businesses track and allocate expenses accurately, providing valuable information for decision-making and financial reporting. Here are some commonly used costing methods.

Costing Methods in Cost Accounting

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Which costing method assigns costs to individual products or services based on their actual costs?

a) Absorption costing

b) Marginal costing

c) Activity-based costing

d) Job costing{alertsuccess}

In process costing, costs are assigned to products based on:

a) Specific job requirements

b) Different cost drivers

c) Actual cost incurred

d) Average costs over a production period{alertsuccess}

Which costing method allocates overhead costs based on a predetermined overhead rate and a standard activity level?

a) Absorption costing

b) Variable costing

c) Standard costing

d) Target costing{alertsuccess}

Job costing is most commonly used in industries such as:

a) Retail

b) Manufacturing

c) Service

d) Agriculture{alertsuccess}

Which costing method considers only variable manufacturing costs when calculating the cost per unit?

a) Absorption costing

b) Standard costing

c) Variable costing

d) Activity-based costing{alertsuccess}

Which costing method assigns direct costs to products but allocates indirect costs based on cost drivers?

a) Absorption costing

b) Marginal costing

c) Activity-based costing

d) Job costing{alertsuccess}

 

Process costing is commonly used in industries such as:

a) Construction

b) Automobile manufacturing

c) Custom furniture manufacturing

d) Advertising agencies{alertsuccess}

Which costing method allocates both variable and fixed manufacturing costs to products?

a) Absorption costing

b) Target costing

c) Job costing

d) Activity-based costing{alertsuccess}

Select the costing method is also known as direct costing or marginal costing?

a) Variable costing

b) Absorption costing

c) Standard costing

d) Activity-based costing{alertsuccess}

In activity-based costing, costs are assigned to products based on their:

a) Direct labor costs

b) Direct materials costs

c) Cost drivers and activity levels

d) Total manufacturing costs{alertsuccess}

Which costing method considers both variable and fixed manufacturing costs but treats fixed costs as period costs?

a) Variable costing

b) Absorption costing

c) Process costing

d) Job costing{alertsuccess}

Which costing method is used to determine the cost of a particular job or project?

a) Target costing

b) Standard costing

c) Job costing

d) Activity-based costing{alertsuccess}

Advantages of absorption costing

a) Provides a more accurate product cost

b) Simplifies cost allocation

c) Focuses on cost drivers

d) Treats fixed costs as period expenses{alertsuccess}

Which costing method is based on the assumption that fixed manufacturing costs are incurred to support the production process?

a) Standard costing

b) Target costing

c) Absorption costing

d) Variable costing{alertsuccess}

Which costing method is primarily concerned with efficiently allocating resources and activities?

a) Standard costing

b) Activity-based costing

c) Target costing

d) Absorption costing{alertsuccess}