{"id":16714,"date":"2022-03-26T12:50:17","date_gmt":"2022-03-26T07:20:17","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=16714"},"modified":"2024-12-31T13:03:26","modified_gmt":"2024-12-31T07:33:26","slug":"mcqs-emerging-concepts-of-cost-accounting","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/mcqs-emerging-concepts-of-cost-accounting\/","title":{"rendered":"50+ MCQ&#8217;s Emerging Concepts of Cost Accounting |  (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">MCQ&#8217;s Emerging Concepts of Cost Accounting<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-1024x576.webp\" alt=\"MCQ&#039;s Emerging Concepts of Cost Accounting\" class=\"wp-image-16822 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting-640x360.webp 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/03\/MCQs-Emerging-Concepts-of-Cost-Accounting.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">MCQ&#8217;s Emerging Concepts of Cost Accounting<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Cost Accounting MCQs pdf<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Place the following steps for the implementation of target costing in order :<\/strong><br>A = Derive a target cost<br>B = Develop a target price<br>C = Perform value engineering<br>D = Determine target profit<br>(a) B, D, A, C<br>(b) B, A, D, C<br>(c) A, D, B, C<br>(d) A, B, C, D<\/p>\n\n\n\n<p><strong>2. In target costing<\/strong><br>(a) the target cost is established first, then the target price.<br>(b) the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit<br>(c) the focus of target costing is to undercut the competition<br>(d) target costs are generally higher than current costs<\/p>\n\n\n\n<p><strong>3. The product strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating income is referred to as<\/strong><br>(a) Cost-plus pricing<br>(b) Target costing<br>(c) Benchmark costing<br>(d) Full costing<\/p>\n\n\n\n<p><strong>4. The costing technique that produces a stipulated profit when a product is sold at its estimated market-driven price is termed: <\/strong><br>(a) Life cycle costing<br>(b) Product costing<br>(c) Target costing<br>(d) Standard costing<\/p>\n\n\n\n<p><strong>5. The four tasks that follow take place in the concept known as target costing:<\/strong><br>(1) Value engineering<br>(2) Establish a target selling price<br>(3) Establish a target cost<br>(4) Establish a target profit<br>Which is the correct sequence of these tasks?<br>(a) 1, 3, 4, 2<br>(b) 3, 1, 4, 2<br>(c) 2, 4, 3, 1<br>(d) 2, 3, 1, 4<\/p>\n\n\n\n<p><strong>6. Ramesh uses target costing and sells a product for Rs 36 per unit. The company seeks a profit margin equal to 25% of sales. If the current manufacturing cost is Rs 29 per unit, the firm will need to implement a cost reduction of<br><\/strong>(a) Rs 0<br>(b) Rs 2<br>(c) Rs 9<br>(d) Rs 20<\/p>\n\n\n\n<p><strong>7. Sun Corporation uses target costing and sells a product for Rs 40 per unit. The company seeks a profit margin equal to 30% of sales. If target-costing calculations revealed a need for a Rs 4 cost reduction, the firm&#8217;s current manufacturing cost must be:<\/strong><br>(a) Rs 12<br>(b) Rs 24<br>(c) Rs 28<br>(d) Rs 32<\/p>\n\n\n\n<p><strong>8. Which of the following denotes a target cost?<\/strong><br>(a) Market price &#8211; Desired profit margin<br>(b) Standard selling price &#8211; Standard profit margin<br>(c) Standard selling price &#8211; Target profit margin<br>(d) Desired selling price &#8211; Desired profit margin<br>(e) Market price &#8211; Return on Investment (ROI)<\/p>\n\n\n\n<p><strong>9. Which of the following is true with respect to target costing?<\/strong><br>(a) It is a method of price determination<br>(b) It is used to develop a short run price<br>(c) It is a process where the cost of the product is determined and then an appropriate price is chosen<br>(d) It is the maximum manufacturing cost for a product which is arrived at by subtracting the acceptable profit margin from the expected market price<\/p>\n\n\n\n<p><strong>10. Which of the following is usually the longest stage in the product life cycle?<\/strong><br>(a) Introduction phase<br>(b) Growth phase<br>(c) Maturity phase<br>(d) Saturation phase<br>(e) Decline Phase<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)B, D, A, C  2)the target cost is the estimated long-run cost that enables a product or service to achieve a desired profit  3)Target costing  4)Target costing<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">5)2, 4, 3, 1<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 6)Rs 2  7)Rs 32  8)Market price &#8211; Desired profit margin  9)It is the maximum manufacturing cost for a product which is arrived at by subtracting the acceptable profit margin from the expected market price  10)Maturity phase<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>11. Which of the following is not a characteristic or assumption of Product Life Cycle Costing?<\/strong><br>(a) Product cost, revenue and profit patterns tend to follow predictable courses through the product life cycle<br>(b) Each phase of the product life cycle poses different threats and opportunities<br>(c) The products have infinite life period<br>(d) Profit per unit varies as product move through their life cycle<br>(e) Products require different functional emphasis in each phase<\/p>\n\n\n\n<p><strong>12. Most of a product&#8217;s life-cycle costs are locked in by decisions made during the business function of the value chain.<\/strong><br>(a) Design<br>(b) Manufacturing<br>(c) Customer-service<br>(d) Marketing<\/p>\n\n\n\n<p><strong>13. Life-cycle costing is particularly important when<\/strong><br>(a) the development period for R&amp;D is short and inexpensive<br>(b) there are significant non-production costs<br>(c) most costs are locked in during production<br>(d) a low percentage of costs are incurred before any revenues are received<\/p>\n\n\n\n<p><strong>14. Life-cycle costing<\/strong><br>(a) has little in common with target costing<br>(b) is most useful to companies that manufacture small items such as household plastics<br>(c) helps companies estimate revenues over a multiyear horizon<br>(d) gives companies more insight into total costs when manufacturing costs consume the majority of the resources<\/p>\n\n\n\n<p><strong>15. The comparison of a company&#8217;s practices and performance levels against those of other organizations is most commonly known as<br><\/strong>(a) Benchmarking<br>(b) Continuous improvement<br>(c) Re-engineering<br>(d) Comparative analysis<\/p>\n\n\n\n<p><strong>16. Comparing the way a &#8220;best-in-class&#8221; company performs a specific activity (such as distribution) is called <\/strong> <br>(a) Competitive Benchmarking<br>(b) Internal Benchmarking<br>(c) Analogus Benchmarking<br>(d) Operational Benchmarking<\/p>\n\n\n\n<p><strong>17. Benchmarking allows a company to<\/strong><br>(a) identify its strengths and weaknesses<br>(b) imitate those ideas that are readily transferable<br>(c) improve on methods in use by others<br>(d) all of the above<\/p>\n\n\n\n<p><strong>18. Which of the following is not a step in benchmarking procedures?<\/strong><br>(a) Analyse the &#8220;worst-in-class&#8221; companies<br>(b) Engage in continuous improvement<br>(c) Analyse the &#8220;performance gap&#8221;<br>(d) Identify &#8220;best-in-class&#8221; companies<\/p>\n\n\n\n<p><strong>19. In ABC indirect costs are allocated to the products based on<\/strong><br>(a) types of activities used by the product<br>(b) the extent to which the activities are used<br>(c) both (a) and (b)<br>(d) none of the above<\/p>\n\n\n\n<p><strong>20. Four basic steps are used in an ABC system. List the proper order of these steps given below:<\/strong><br>(A) Identify the primary activities and estimate a total cost pool for each.<br>(B) Allocate the costs to the cost object using the activity cost allocation rates.<br>(C) Select an allocation base for each activity.<br>(D) Calculate an activity cost allocation rate for each activity.<br>(a) C, A, B, D<br>(b) A, C, D, B<br>(c) B, A, C, D<br>(d) A, D, C, B<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">11)The products have infinite life period  12)Design  13)there are significant non-production costs<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">14)helps companies estimate revenues over a multiyear horizon<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">15)Benchmarking<\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">16)Competitive Benchmarking  17)all of the above  18)types of activities used by the product  19)both (a) and (b)  20)A, C, D, B<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>21. All of the following are considered to be part of the activity levels often used to implement ABC, with the exception of <\/strong><br>(a) production-level activity<br>(b) batch-level activity<br>(c) product-level activity<br>(d) unit-level activity<\/p>\n\n\n\n<p><strong>22. Which of the following systems focuses on activities as the fundamental cost objects and uses the costs of those activities for compiling the indirect costs of products?<\/strong><br>(a) Job costing<br>(b) Activity-based costing<br>(c) Process costing<br>(d) Product costing<\/p>\n\n\n\n<p><strong>23. Regarding activity-based costing systems, which of the following statements is true?<\/strong><br>(a) ABC systems accumulate overhead costs by departments.<br>(b) ABC costing systems are less complex and, therefore, less costly than traditional systems.<br>(c) ABC costing systems have separate indirect cost allocation rates for each activity.<br>(d) ABC costing systems can be used in manufacturing firms only.<\/p>\n\n\n\n<p><strong>24. Examples of activities at the batch level of costs include:<\/strong><br>(a) cutting, painting, and packaging<br>(b) material ordering, machine set up, and inspection<br>(c) designing, part-specification, and advertising<br>(d) heating, lighting, and security<br>(e) none of the above<\/p>\n\n\n\n<p><strong>25. Examples of activities at the product level of costs include:<\/strong><br>(a) cutting, painting, and packaging<br>(b) material ordering, machine set up, and inspection<br>(c) designing, part-specification, and advertising<br>(d) heating, lighting, and security<br>(e) none of the above<\/p>\n\n\n\n<p><strong>26. Which of the following is typically regarded as a cost driver in traditional accounting practices?<\/strong><br>(a) Number of purchase orders processed<br>(b) Number of customers served<br>(c) Number of transactions processed<br>(d) Number of direct labour hours worked<\/p>\n\n\n\n<p><strong>27. The term cost driver refers to<\/strong><br>(a) any activity that can be used to predict cost changes<br>(b) the attempt to control expenditures at a reasonable level<br>(c) the person who gathers and delivers cost data to the management accountant<br>(d) any activity that causes costs to be incurred<\/p>\n\n\n\n<p><strong>28. Cost allocation bases in activity-based costing should be<\/strong><br>(a) Cost drivers<br>(b) Cost pools<br>(c) Activity centers<br>(d) Resources<\/p>\n\n\n\n<p><strong>29. Costs that are common to many different activities within an organization are known as _______ costs. <\/strong><br>(a) Product-level<br>(b) Facility-level<br>(c) Batch-level<br>(d) Unit-level<\/p>\n\n\n\n<p><strong>30. Relative to traditional product costing, activity-based costing differs in the way costs are<\/strong><br>(a) processed<br>(b) allocated<br>(c) benchmarked<br>(d) incurred<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>21)production-level activity  22)Activity-based costing  23)ABC costing systems have separate indirect cost allocation rates for each activity.  24)material ordering, machine set up, and inspection  25)designing, part-specification, and advertising  26)Number of direct labour hours worked  27)any activity that causes costs to be incurred  28)Cost drivers<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">  29)Facility-level  30)allocated <\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Cost Accounting<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>31. Which one of the following is a collection of overhead costs related to a cost object?<\/strong><br>(a) Cost pool<br>(b) Cost driver<br>(c) Cost object<br>(d) Cost allocation<\/p>\n\n\n\n<p><strong>32. In activity-based costing, final cost allocations assign costs to<\/strong><br>(a) departments<br>(b) processes<br>(c) products<br>(d) activities<\/p>\n\n\n\n<p><strong>33. Activity rates are determined by<\/strong><br>(a) dividing the actual cost for each activity pool by the actual activity base for that pool<br>(b) dividing the cost budgeted for each activity pool by the estimated activity base for that pool<br>(c) dividing the actual cost for each activity pool by the estimated activity base for that pool<br>(d) dividing the cost budgeted for each activity pool by the actual activity base in that pool<\/p>\n\n\n\n<p><strong>34. Providing the power required to run production equipment is an example of a<\/strong><br>(a) Unit-level activity<br>(b) Batch-level activity<br>(c) Product-level activity<br>(d) Organization-sustaining activity<\/p>\n\n\n\n<p><strong>35. The following tasks are associated with an activity-based costing system:<br><\/strong>(1) Calculation of cost application rates<br>(2) Identification of cost drivers<br>(3) Assignment of cost to products<br>(4) Identification of cost pools<br>Which of the following choices correctly expresses the proper order of the preceding tasks?<br>(a) 1, 2, 3, 4<br>(b) 2, 4, 1, 3<br>(c) 3, 4, 2, 1<br>(d) 4, 2, 1, 3<br>(e) 4, 2, 3, 1<\/p>\n\n\n\n<p><strong>36.Which of the following is not a broad, cost classification category typically used in activity-based costing?<\/strong><br>(a) Unit-level<br>(b) Batch-level<br>(c) Product-sustaining level<br>(d) Facility-level<br>(e) Management-level<\/p>\n\n\n\n<p><strong>37. In an activity-based costing system, direct materials used would typically be classified as a<\/strong><br>(a) unit-level cost<br>(b) batch-level cost<br>(c) product-sustaining cost<br>(d) facility-level cost<\/p>\n\n\n\n<p><strong>38. In an activity-based costing system, materials receiving would typically be classified as a<\/strong><br>(a) unit-level activity<br>(b) batch-level activity<br>(c) product-sustaining activity<br>(d) facility-level activity<\/p>\n\n\n\n<p><strong>39.The salaries of a manufacturing plant&#8217;s management are said to arise from<\/strong><br>(a) unit-level activities<br>(b) batch-level activities<br>(c) product-sustaining activities<br>(d) facility-level activities<\/p>\n\n\n\n<p><strong>40. An activity that has a direct cause-effect relationship with the resources consumed is a (n)<\/strong><br>(a) cost driver<br>(b) overhead rate<br>(c) cost pool<br>(d) product activity<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>31)Cost pool  32)products  33)dividing the cost budgeted for each activity pool by the estimated activity base for that pool  34)Unit-level activity  35)4, 2, 1, 3  36)Management-level  37)unit-level cost  38)batch-level activity<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 39)facility-level activities<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 40)cost driver<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. A well-designed activity-based costing system starts with<\/strong>:<br>(a) identifying the activity-cost pools<br>(b) computing the activity-based overhead rate<br>(c) assigning manufacturing overhead costs for each activity cost pool to products<br>(d) analysing the activities performed to manufacture a product<\/p>\n\n\n\n<p><strong>42. Assigning overhead using ABC will usually<\/strong><br>(a) decrease the cost per unit for low volume products as compared to a traditional overhead allocation<br>(b) increase the cost per unit for low volume products as compared to a traditional overhead allocation<br>(c) provide less accurate cost per unit for low volume products than will traditional costing<br>(d) result in the same cost per unit for low volume products as does traditional costing<\/p>\n\n\n\n<p><strong>43. The primary benefit of ABC is it provides<\/strong><br>(a) better management decisions <br>(b) enhanced control over overhead costs<br>(c) more cost pools <br>(d) more accurate product costing<\/p>\n\n\n\n<p><strong>44. Which of the following is&nbsp;not&nbsp;a benefit of activity-based costing?<\/strong><br>(a) More accurate product costing <br>(b) Enhanced control over overhead costs<br>(c) Better management decisions <br>(d) Less costly to use<\/p>\n\n\n\n<p><strong>45. Which of the following is a limitation of activity-based costing?<\/strong><br>(a) More cost pools <br>(b) Less control over overhead costs<br>(c) ABC can be expensive to use <br>(d) Poorer management decisions<\/p>\n\n\n\n<p><strong>46. Which of the following is&nbsp;not&nbsp;a facility-level activity?<\/strong><br>(a) Plant management <br>(b) Product design<br>(c) Personnel administration <br>(d) Training<\/p>\n\n\n\n<p><strong>47. Which of the following is&nbsp;not&nbsp;a product-level activity?<\/strong><br>(a) Product design <br>(b) Engineering changes<br>(c) Inventory management <br>(d) Equipment setups<\/p>\n\n\n\n<p><strong>48. Which of the following is&nbsp;not&nbsp;a batch-level activity?<\/strong><br>(a) Engineering changes <br>(b) Equipment setups<br>(c) Inspection <br>(d) Materials handling<\/p>\n\n\n\n<p><strong>49. Which of the following is&nbsp;not&nbsp;a unit-level activity?<\/strong><br>(a) Purchase ordering <br>(b) Assembling<br>(c) Painting <br>(d) Sewing<\/p>\n\n\n\n<p><strong>50. Which of the following is&nbsp;not&nbsp;a facility-level activity?<\/strong><br>(a) Plant depreciation <br>(b) Property taxes<br>(c) Engineering changes <br>(d) Utilities<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>41)analysing the activities performed to manufacture a product  42)increase the cost per unit for low volume products as compared to a traditional overhead allocation  43)more accurate product costing<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 44)Less costly to use  45)ABC can be expensive to use  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">46)Product design  47)Equipment setups  48)Engineering changes<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 49)Purchase ordering<\/mark><\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">50)Engineering changes   <\/mark>  <\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>51. Which of the following is&nbsp;not&nbsp;a product-level activity?<\/strong><br>(a) Product design <br>(b) Engineering changes<br>(c) Material handling <br>(d) Inventory management<\/p>\n\n\n\n<p><strong>52. Which of the following is&nbsp;not&nbsp;a batch-level activity?<\/strong><br>(a) Purchase ordering <br>(b) Equipment setups<br>(c) Inspection <br>(d) Assembling<\/p>\n\n\n\n<p><strong>53. Which of the following is&nbsp;not&nbsp;a unit-level activity?<\/strong><br>(a) Drilling <br>(b) Cutting<br>(c) Sanding <br>(d) Inspecting<\/p>\n\n\n\n<p><strong>54. Which of the following is a unit-level activity?<\/strong><br>(a) Painting <br>(b) Purchase ordering<br>(c) Inspection <br>(d) Material handling<\/p>\n\n\n\n<p><strong>55. Which of the following is a batch-level activity?<\/strong><br>(a) Assembling <br>(b) Product design<br>(c) Engineering changes <br>(d) Purchase ordering<\/p>\n\n\n\n<p><strong>56. Which of the following is a product-level activity?<\/strong><br>(a) Equipment setups <br>(b) Product design<br>(c) Property taxes <br>(d) Utilities<\/p>\n\n\n\n<p><strong>57. Which of the following is a facility-level activity?<\/strong><br>(a) Engineering changes <br>(b) Product design<br>(c) Property taxes <br>(d) Inspection<\/p>\n\n\n\n<p><strong>58. Activities required to support or sustain an entire production process are called<\/strong><br>(a) unit-level activities <br>(b) batch-level activities<br>(c) product-level activities <br>(d) facility-level activities<\/p>\n\n\n\n<p><strong>59. Cost allocation bases in activity-based costing should be<\/strong><br>(a) cost drivers <br>(b) value-added activities<br>(c) activity centers <br>(d) processes<\/p>\n\n\n\n<p><strong>60. What is the purpose of ABC?<\/strong><br>(a) To identify what product costs are incurred by a company<br>(b) To allocate and assign all product costs incurred to the appropriate products or services<br>(c) To determine a cost object for which cost information is needed<br>(d) To allocate and assign indirect costs<br>(e) To analyse the activities that cause cost pools to increase<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>51)Material handling  52)Assembling  53)Inspecting<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 54)Painting  55)Purchase ordering  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">56)Product design  57)Property taxes  58)facility-level activities<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 59)cost drivers<\/mark><\/mark>  <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">60)To allocate and assign indirect costs   <\/mark>  <\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":16822,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4745],"class_list":["post-16714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-mcqs-emerging-concepts-of-cost-accounting"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/16714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=16714"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/16714\/revisions"}],"predecessor-version":[{"id":35967,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/16714\/revisions\/35967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/16822"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=16714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=16714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=16714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}