A Quiz On Batch Costing!

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By Monique9111

Monique9111

Community Contributor

Quizzes Created: 1 | Total Attempts: 1,101

Questions: 10 | Attempts: 1,101 | Updated: Mar 22, 2023

Questions

Settings

Feedback

During the Quiz End of Quiz

Difficulty

Sequential Easy First Hard First

Play as

Quiz Flashcard

Create your own Quiz

Share on Facebook Share on Twitter Share on Whatsapp Share on Pinterest Share on Email Copy to Clipboard Embed on your website

Have you ever heard of batch costing? Batch costing is a technique utilized by the ideas which generate an identical product or an item in a vast number at a time. Manufactured units are collectively known as a batch and the cost of production is determined for a batch because a batch is considered a unit. This sensible quiz will assist you with learning about batch costing.

Questions and Answers

1.

Under Batch Costing, a batch is regarded as a single cost unit.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Under batch costing, a batch is considered as a single cost unit. This means that all costs incurred in producing a specific batch of products or services are accumulated and allocated to that batch. This allows for better cost control and analysis, as the costs can be directly attributed to a specific batch. By considering a batch as a single cost unit, it becomes easier to track and manage the costs associated with each batch, facilitating decision-making and cost optimization.

Rate this question:

3
0
2.

Costs are not calculated batch-wise under batch costing.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
In batch costing, costs are indeed calculated batch-wise. Batch costing is a method of costing used in industries where products are produced in batches or groups rather than individually. It involves the identification of costs incurred for each batch separately, such as direct materials, direct labor, and manufacturing overhead. By analyzing the costs for each batch, companies can determine the profitability and efficiency of their production processes. Therefore, the statement "Costs are not calculated batch-wise under batch costing" is false.

Rate this question:
3.

Batch costing is used when items of an identical nature are produced in a batch.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Batch costing is a method used in cost accounting to determine the cost of producing a batch of identical items. It involves allocating the costs incurred during the production process to each individual item in the batch. This method is particularly useful when the items produced are similar in nature and can be grouped together for cost calculation purposes. Therefore, the statement "Batch costing is used when items of an identical nature are produced in a batch" is true.

Rate this question:
4.

In batch costing, items are classified into groups for purposes of costing
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
In batch costing, items are classified into groups for purposes of costing. This means that similar items or products are grouped together based on common characteristics such as production process, material requirements, or production volume. By grouping items into batches, it becomes easier to allocate costs and determine the cost per unit for each batch. This allows for more accurate costing and helps in decision-making regarding pricing, production planning, and inventory management.

Rate this question:
5.

Batch costing can be used only in large organizations.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Batch costing is a costing method that is used to determine the cost of a batch of similar products or services. It is not limited to large organizations and can be used by organizations of any size. Batch costing is particularly useful when there is a need to track the cost of producing a specific batch or group of products separately from others. Therefore, the statement that batch costing can be used only in large organizations is incorrect.

Rate this question:

1
0
6.

Batch Costing may be used in a Power House.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Batch costing is a cost accounting method used in industries where products are manufactured in batches or groups. It is not typically used in a Power House, which is a facility that generates electrical power. Power Houses typically use process costing, as the production of electricity is a continuous and ongoing process rather than being done in batches. Therefore, the statement that Batch Costing may be used in a Power House is false.

Rate this question:

1
0
7.

There is a difference between Job Costing and Batch Costing.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Job costing and batch costing are two different methods used for cost allocation. Job costing is used when the production process is customized or tailored to meet the specific requirements of each individual job or project. It involves tracking the costs incurred for each job separately, allowing for accurate cost estimation and pricing. On the other hand, batch costing is used when a group of identical or similar products are produced together in batches. The costs incurred for each batch are then allocated to the individual units within that batch. Therefore, it is correct to say that there is a difference between job costing and batch costing.

Rate this question:
8.

In Batch Costing, a cost sheet is prepared for each job.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
In batch costing, a cost sheet is not prepared for each job, but for each batch of similar products. This allows for the allocation of costs to a group of products that are produced together, rather than individually. By preparing a cost sheet for each batch, it becomes easier to track and analyze the costs associated with producing that specific group of products. Therefore, the given statement is false.

Rate this question:
9.

Batch Costing is used for the production of articles like radio, television, watches, etc.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Batch costing is a cost accounting method used for the production of articles that are produced in batches or groups. This method is commonly used for products like radio, television, watches, etc., where a specific number of units are produced in a single batch. In batch costing, the costs incurred in producing each batch are calculated and allocated to the units within that batch. Therefore, the given statement is true as batch costing is indeed used for the production of articles like radio, television, watches, etc.

Rate this question:
10.

Assigning a batch number to a batch is important in Batch Costing.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Assigning a batch number to a batch is important in Batch Costing because it helps in tracking and identifying the specific batch throughout the production process. This enables accurate cost allocation and analysis of the costs associated with each batch. It also aids in inventory management, quality control, and traceability. Without batch numbers, it would be difficult to monitor and control costs effectively in batch costing.

Rate this question:

3
0

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Dec 08, 2014

Quiz Created by
Monique9111

A Quiz On Batch Costing!

Under Batch Costing, a batch is regarded as a single cost unit.

Costs are not calculated batch-wise under batch costing.

Batch costing is used when items of an identical nature are produced in a batch.

In batch costing, items are classified into groups for purposes of costing

Batch costing can be used only in large organizations.

Batch Costing may be used in a Power House.

There is a difference between Job Costing and Batch Costing.

In Batch Costing, a cost sheet is prepared for each job.

Batch Costing is used for the production of articles like radio, television, watches, etc.

Assigning a batch number to a batch is important in Batch Costing.