Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?
A. outsourcing B. insourcing C. idle sourcing D. sunk sourcing
Accounting MCQs with Answers
The cost of new machine is considered as ______________?
A. relevant B. bunk C. dispose value D. sunk
The department which provides assisting services to internal departments is classified as __________?
A. supply department B. support department C. production department D. allocation base department
The department which directly adds value to product or service is known as __________?
A. production department B. operating department C. allocation base department D. both a and b
The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as _____________?
A. step down allocation method B. stand-alone revenue allocation method C. incremental revenue allocation method D. revenue mix allocation method
The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?
A. step down product B. dual mix product C. bundled product D. reciprocal product
The approaches to allocate costs of support department do not include ___________?
A. sales mix allocation method B. dual-rate cost-allocation method C. single rate cost allocation method D. both b and c
The second ranked product in incremental revenue allocation method is termed as __________?
A. primary product B. First incremental product C. Second incremental product D. Third incremental product
The method which allocates the cost of support department to only operating departments is called ___________?
A. indirect method B. direct method C. step down method D. reciprocal method
Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be ____________?
A. $2,078,000 B. $3,078,000 C. $2,065,000 D. $3,065,000