691. When the amount of overhead absorbed is less than the amount of overhead incurred, it is called:
A. Under-absorption of overhead
B. Over-absorption of overhead
C. Proper absorption of overhead
D. None of them
692. 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
693. Which costs will change with an increase in activity within the relevant range?
A. Unit fixed cost and total fixed cost
(B) Unit variable cost and total variable cost
(C) Unit fixed cost and total variable cost
(D) Unit fixed cost and unit fixed cost
694. Which of the following is CORRECT to calculate the cost of goods manufactured?
(A) Direct labor costs plus total manufacturing costs
B. The beginning work in process inventory plus total manufacturing costs and subtract the ending work in process inventory
(C) Beginning raw materials inventory plus direct labor plus factory overhead
(D) Conversion costs and work in process inventory adjustments result in the cost of goods manufactured
695. Which of the following costs would NOT be a period cost?
(A) Indirect materials
(B) Administrative salaries
C. Advertising costs
(D) Selling costs
696. Machine lubricant used on processing equipment in a manufacturing plant would be classified as a?
(A) Period cost (manufacturing overhead)
(B) Period cost (Selling, General & Admin)
C. Product cost (manufacturing overhead)
(D) Product cost (Selling, General & Admin)
697. Assuming no returns outwards or carriage inwards, the cost of goods sold will be equal to:
(A) Opening stock Less purchases plus closing stock
(B) Closing stock plus purchases plus opening stock
C. Sales less gross profit
(D) Purchases plus closing stock plus opening stock plus direct labor
698. Which of the given cost is NOT required to prepare the Cost of Production Report?
A. Period cost
(B) Material cost
(C) Labour cost
(D) Factory overhead cost
699. Which of the following product costs is included in prime cost and conversion cost?
A. Direct labor
(B) Manufacturing overhead
(C) Direct material
(D) Work in Process
700. What is the basic accounting equation?
A: Capital + Liabilities = Assets
B: Assets + Liabilities = Capital
C: Capital + Assets = Liabilities
D: Liabilities + Capital
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