Question 1

To what are service cost centre costs assigned?

Accepted Answer

A) individual customers. 
B) corporate headquarters. 
C) production cost centres. 
D) units of output directly. 
A) individual customers. 
B) corporate headquarters. 
C) production cost centres. 
D) units of output directly.

Question 2

Which of the following is an example of a product cost centre?

Accepted Answer

A) corporate headquarters. 
B) payroll department. 
C) accounts payable department. 
D) machining department. 
A) corporate headquarters. 
B) payroll department. 
C) accounts payable department. 
D) machining department.

Question 3

The base for allocating overhead costs most commonly used in practice is:

Accepted Answer

A) Direct labour cost. 
B) Direct labour hours. 
C) Machine hours. 
D) Units produced. 
A) Direct labour cost. 
B) Direct labour hours. 
C) Machine hours. 
D) Units produced.

Question 4

Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
i)Hairdressers' salaries
ii)Shampoo and Conditioner
(no individual records kept of usage)
iii)Colour and Perm Solutions
(individual records kept of usage per client)
iv)Electricity and Gas
v)Depreciation of equipment
-Refer to the information above. The indirect costs incurred in providing a haircut only to a client would be:

Accepted Answer

A) all costs mentioned above. 
B) shampoo and conditioner, electricity and gas. 
C) electricity and gas and depreciation of equipment. 
D) shampoo and conditioner, electricity and gas, and depreciation of equipment. 
A) all costs mentioned above. 
B) shampoo and conditioner, electricity and gas. 
C) electricity and gas and depreciation of equipment. 
D) shampoo and conditioner, electricity and gas, and depreciation of equipment.

Question 5

Use the information below to answer the following questions.
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in a different department: framing, stringing, and finishing. The following information relates to each department for the month of April: $\begin{array}{llll} 
& \text { FRAMING } & \text { STRINGING } & \text { FINISHING } \
\text { Direct Costs } & \$ 20,000 & \$ 30,000 & \$ 66,000 \
\text { Ind irect Costs } & \$ 10,000 & \$ 20,000 & \$ 30,000 \
\text { Labour Hours } & 2,000 \mathrm{hrs} & 5,000 \mathrm{hrs} & 3,000 \mathrm{hrs}\
\text { Machine hours } & 500 \mathrm{hr} s
\end{array}$
$\text { Production for April is } 10,000 \text { racquets }$
-Refer to the table above. The direct unit cost per racquet for April is:

Accepted Answer

A) $17.00. 
B) $9.60. 
C) $16.70. 
D) $11.60. 
A) $17.00. 
B) $9.60. 
C) $16.70. 
D) $11.60.

Question 6

Nugyen Pty Ltd estimates its overhead costs will be $300,000 for the coming year and it will use 20,000 direct labour hours over the same period. How much overhead will be charged to a job that uses 25 direct labour hours?

Accepted Answer

A) $375. 
B) $15. 
C) $23. 
D) $120. 
A) $375. 
B) $15. 
C) $23. 
D) $120.

Question 7

All of the statements regarding activity-based costing are correct except:

Accepted Answer

A) it provides better information for decision-making. 
B) it provides more accurate product costs. 
C) it is used by the majority of businesses in Australia. 
D) it is costlier than alternative systems. 
A) it provides better information for decision-making. 
B) it provides more accurate product costs. 
C) it is used by the majority of businesses in Australia. 
D) it is costlier than alternative systems.

To what are service cost centre costs assigned?

Which of the following is an example of a product cost centre?

The base for allocating overhead costs most commonly used in practice is:

Nugyen Pty Ltd estimates its overhead costs will be $300,000 for the coming year and it will use 20,000 direct labour hours over the same period. How much overhead will be charged to a job that uses 25 direct labour hours?

All of the statements regarding activity-based costing are correct except:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 10: Full Costing

To what are service cost centre costs assigned?

Which of the following is an example of a product cost centre?

The base for allocating overhead costs most commonly used in practice is:

Nugyen Pty Ltd estimates its overhead costs will be $300,000 for the coming year and it will use 20,000 direct labour hours over the same period. How much overhead will be charged to a job that uses 25 direct labour hours?

All of the statements regarding activity-based costing are correct except:

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters