Broad Averaging and Consequence Multiple Choice Questions (MCQ) PDF Download

MCQ 1: An approach in which the company under-costs it's one product and over-costs at least one product is classified as

1. service-cost across subsidizing
2. product-price cross subsidizing
3. product-cost cross subsidizing
4. product cross subsidizing

MCQ 2: The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by

1. budgeted direct cost rate
2. budgeted indirect cost rate
3. expected indirect cost rate
4. direct budget percentage

MCQ 3: The product which requires low amount of resources, but incur high per unit cost is classified as

1. expected under cost
2. expected over cost
3. product under costing
4. product over costing

MCQ 4: The product which requires large amount of resources, but incur low per unit cost is classified as

1. product under costing
2. product over costing
3. expected under cost
4. expected over cost