COST ACCOUNTING QUIZ 2 (FINALS)

1. Which of the following is synonymous to the “algebraic method” of service cost

allocation? - b. Simultaneous method
2. Costing systems that are used for the costing of like or similar units of products in mass
production are called - c. process-costing systems
3. Under the weighted-average method, the stage of completion of beginning work in
process - b. is irrelevant in determining the equivalent-unit calculation
4. Spoilage that is an inherent result of the particular production process and arises under
efficient operating conditions is referred to as - b. normal spoilage
5. A disadvantage of the weighted-average method compared to the FIFO process-costing
method is that - a. the information it provides about changes in unit prices from one
period to the next is less useful than the information provided by FIFO
6. If normal spoilage is detected at an inspection point within the process (rather than at the
end), the cost of that spoilage should be - b. Allocated to the good units that have
passed the inspection point
7. Normal spoilage units resulting from a continuous process - d. Result in a higher unit
cost for the good units produced
8. All of the following are methods of allocating service department costs, except for one.
Which of the following is the exception? - a. Direct distribution method
9. The method of distributing service department costs to production departments which
makes no attempt to determine the extent to which one service department renders its
services to another service department is the - a. Direct distribution method
10. Persian Company has a cost per EUP of P20 for materials and P25 for conversion cost
for its product. There are 2,500 physical units in ending work in process, 50% complete
as to conversion cost; and 70% complete as to material cost. The cost assignable to
ending work in process inventory is - d. P 66,250