Exam 11: Costing and Pricing in an Entity

When different prices are charged at different times to reduce capacity restraints (e.g.toll charges on the Sydney Harbour bridge are higher during peak hour),this is known as:

When determining the full cost of a cost object:

In determining the cost of inventory,Department A's indirect costs are to be allocated using machine hours as the cost driver.If Department A's indirect costs total $300 000 and it expects to use 25 500 machine hours for the period the indirect cost rate for the department is:

Manufacturing entities which produce products that consume resources differently and whose costing system needs to separate costs by individual jobs use:

Which of the following is not a volume based cost driver?

All the linked activities undertaken within an entity from the inception of the product or service to the final delivery to customers is known as the ____________________ value chain

One criteria that can be used in the selection of cost drivers is _______________ received.

Which of these businesses is likely to operate a job costing system?

Barry & Co produces a range of products through several processes.Total overhead costs for process A are $400 000 and overhead is allocated to units of product on the basis of $6 of overhead for each hour of direct labour employed.If 7000 units of product Y pass through process A requiring 3500 direct labour hours the overhead from process A to be applied to product Y is:

Costs drivers can be based on either volume or activity.Which of the following is an activity based cost driver?

Which of these is an indirect cost if the cost object is the delivery department of a motorbike manufacturer?

An indirect cost is linked to individual cost objects by identification of an appropriate cost ___________.

Predetermined indirect cost rates are necessary because

The following information is available for product XX5. Direct material costs $48.00 per unit of product Costs of machining $37.50 per machine hour Costs of packing $12.50 per carton packed What is the total full cost of an order for 1000 units of product XX5 which will use 65 machine hours and 45 cartons?

A predetermined indirect cost rate cannot be calculated by using

Peak- ________ pricing is the practice of charging different prices at different times to reduce capacity restraints.

Costs that can be directly traced to a cost object in an economical manner are known as _____________ costs.

Which of the following can be a cost object?

The product costing system used by manufacturing entities that produce large numbers of identical items in a continuous production process is known as a _______________ costing system.

A predetermined indirect cost rate is calculated