This quiz, process costing multiple choice questions (MCQs), tests a student's knowledge of the fundamentals. Completing it will be helpful to prepare for exams and interviews. The quiz contains 9 MCQs with 4 possible options for each MCQ. Students need to select the correct option to proceed to the next question. You can complete the MCQs test for process costing below. If you find any questions difficult, you can learn more about process costing from the section on cost accounting. 1. A share of the process cost according to the stage of completion of the losses A nill value with no other monetary adjustment under any circumstances A full share of process cost on the same as good output A nill share of process costs, which have been reduced by the scrap value of the normal loss See answer 2. Opening W.I.P. (400 units) (60{d0afdaa181725aacfbdd21d89d52cc83639c886bb7a9b98bc7effb44283185c0} complete) Closing W.I.P. (600 units) (20{d0afdaa181725aacfbdd21d89d52cc83639c886bb7a9b98bc7effb44283185c0} complete) Unit started 1,000 Unit finished 800 See answer 3. When actual losses are greater than the normal loss level When costs are reduced through increased machine speed When actual losses are less than the normal level When the process output is greater than planned See answer 4. At the same price as it sold externally At the cost of normal losses At the cost attached to abnormal losses Nil value See answer 5. A means of equalizing production charges into stock each period The conversion of partly completed units into an equivalent number of completed units in order that costs may be shared equitably The expression of losses in terms of an equivalent number of units of good production in order that their value may be calculated A means by which the output achieved may be compared with the equivalent quantity budgeted for the period under review See answer 6. Not change the amount transferred to the next department Decrease the total work in the process inventory Increase the factory overhead portion of the ending work-in-process inventory Increase total unit cost See answer 7. Quantities schedule Equivalent production schedule Cost of account for schedule Cost of accounted for schedule See answer 8. Change the direct labor cost percentage in the ending work-in-process inventory Cause no change in the unit cost transferred from the first department Increase total units costs Decrease total ending work-in-process inventory See answer 9. The amount of material conversion cost necessary to complete one unit of production A unit of work-in-process inventory The amount of material or conversion cost necessary to start a unit of production into workthe -in-process inventory 50% of material or conversion cost of a unit to finished goods inventory (assuming a linear production pattern) See answer View Results Process Costing MCQs FAQs What factors should be considered when making decisions in accounting? When making decisions in accounting, it is essential to consider all relevant factors. Some of the factors that may be considered include the company’s financial position, Cash Flow, profitability, and business strategy. What are some common accounting decisions? In accounting, decision-making is the process of choosing between two or more courses of action to achieve the desired outcome. Factors that should be considered when making decisions include the company’s financial position, Cash Flow, profitability, and business strategy. Accountants use the information to make decisions by analyzing data and trends to make informed decisions to help the company achieve its goals. How do accountants make decisions? Accountants use the information to make decisions by analyzing data and trends. This information can come from Financial Statements, internal reports, surveys, and other sources. By analyzing this data, accountants can make informed decisions to help the company achieve its goals. What are some common accounting decision-making models? Common accounting decision-making models include the rational decision model, the incremental decision model, and the satisficing decision model. Each of these models has its own set of steps that should be followed when deciding. About the Author True Tamplin, BSc, CEPF® Facebook Linkedin Instagram Twitter Youtube True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists. True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics. To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
This quiz, process costing multiple choice questions (MCQs), tests a student's knowledge of the fundamentals. Completing it will be helpful to prepare for exams and interviews. The quiz contains 9 MCQs with 4 possible options for each MCQ. Students need to select the correct option to proceed to the next question. You can complete the MCQs test for process costing below. If you find any questions difficult, you can learn more about process costing from the section on cost accounting. 1. A share of the process cost according to the stage of completion of the losses A nill value with no other monetary adjustment under any circumstances A full share of process cost on the same as good output A nill share of process costs, which have been reduced by the scrap value of the normal loss See answer 2. Opening W.I.P. (400 units) (60{d0afdaa181725aacfbdd21d89d52cc83639c886bb7a9b98bc7effb44283185c0} complete) Closing W.I.P. (600 units) (20{d0afdaa181725aacfbdd21d89d52cc83639c886bb7a9b98bc7effb44283185c0} complete) Unit started 1,000 Unit finished 800 See answer 3. When actual losses are greater than the normal loss level When costs are reduced through increased machine speed When actual losses are less than the normal level When the process output is greater than planned See answer 4. At the same price as it sold externally At the cost of normal losses At the cost attached to abnormal losses Nil value See answer 5. A means of equalizing production charges into stock each period The conversion of partly completed units into an equivalent number of completed units in order that costs may be shared equitably The expression of losses in terms of an equivalent number of units of good production in order that their value may be calculated A means by which the output achieved may be compared with the equivalent quantity budgeted for the period under review See answer 6. Not change the amount transferred to the next department Decrease the total work in the process inventory Increase the factory overhead portion of the ending work-in-process inventory Increase total unit cost See answer 7. Quantities schedule Equivalent production schedule Cost of account for schedule Cost of accounted for schedule See answer 8. Change the direct labor cost percentage in the ending work-in-process inventory Cause no change in the unit cost transferred from the first department Increase total units costs Decrease total ending work-in-process inventory See answer 9. The amount of material conversion cost necessary to complete one unit of production A unit of work-in-process inventory The amount of material or conversion cost necessary to start a unit of production into workthe -in-process inventory 50% of material or conversion cost of a unit to finished goods inventory (assuming a linear production pattern) See answer View Results