An approach which yields benefits of normal costing and actual manufacturing overhead is classified as

A unadjusted allocation rate approach
B adjusted budget rate approach
C unadjusted budget rate approach
D adjusted allocation rate approach

Correct Answer: adjusted allocation rate approach

An approach which yields benefits of normal costing and actual manufacturing overhead is classified as adjusted allocation rate approach. The adjusted allocation-rate approach restates or corrects estimated overhead costs booked throughout the year, so that the actual overhead costs are recorded properly.
Bissoy MCQ
#Commerce #Costing

Related Questions

Costing system, which is a combination of process costing and job costing system is classified as
A weighted costing system
B average costing system
C hybrid costing system
D double costing system
A fruit salad is made by mixing 3 kgs of mango costing Tk 120 per kg and 2kgs of papaya costing Tk 100 per kg and 2 kgs of grapes costing Tk 140 per kg. At what price (in Taka) per kg should the mixture be sold to make a profit of 25 percent?
A 125
B 150
C 175
D None of these
A candy dealer makes up a mixture of 3 parts of candy costing him Tk. 60 per pound with 2 parts of candy costing him Tk. 70 per pound and 2 parts of candy costing him Tk. 50 per pound. At what price per pound should he sell his mixture to make a profit of 25 percent?
A Tk. 50
B Tk. 60
C Tk. 70
D Tk. 75
When the actual overhead is less than the absorbed overhead it is ________.
A over absorption
B under absorption
C equal absorption
D major absorption
An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called
A unadjusted budget rate approach
B adjusted allocation rate approach
C unadjusted allocation rate approach
D adjusted budget rate approach
Sellling 12 pen at a price of Tk 10 yields a loss of a% Selling 12 pen at a price of Tk 12 yields a profit of a%. What is the value of a?
A 10
B 11
C 10011
D 11100
The time interval from when the given star passes directly overhead to when it next passed directly overhead, is defined as
A one sidereal day
B one solar day
C both the terms are similar, so any of these may be used
D None of the above
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as
A priced costing
B actual costing
C direct costing
D indirect costing
In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate
A budget overhead applied
B manufacturing overhead applied
C labour overhead applied
D none of above
An accounting approach, in which expected benefits exceed expected cost is classified as
A benefit approach
B cost approach
C cost-benefit approach
D accounting approach

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