Costing

1. Cost which is changed in proportion to level total volume is

fixed cost
variable cost
total cost
infeasible cost

Detailed SolutionCost which is changed in proportion to level total volume is

2. Scrap is ________.

residue of material
wastage of material
surplus material
abnormal loss of material

Detailed SolutionScrap is ________.

3. The ascertainment of costs after they have been incurred is known as _________.

marginal costing
historical costing
sunk cost
notional cost

Detailed SolutionThe ascertainment of costs after they have been incurred is known as _________.

4. A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as

in-time production
materials requirement planning
on-time production
pull strategy of production

Detailed SolutionA push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as

5. Which of the following method of wage payment is most suitable where the speed of production is beyond the control of worker?

Time rate system
Piece rate system
Halsey premium system
Rowan premium plan

Detailed SolutionWhich of the following method of wage payment is most suitable where the speed of production is beyond the control of worker?

6. Costing system, which is a combination of process costing and job costing system is classified as

weighted costing system
average costing system
hybrid costing system
double costing system

Detailed SolutionCosting system, which is a combination of process costing and job costing system is classified as

7. In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.

be less than
be greater than
be equal to
None of these

Detailed SolutionIn a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.

8. Raw material purchased: 1st January, 600 units @ Rs. 12 per unit 12th January, 500 units @ Rs. 14 per unit 21st January, 300 units @ Rs. 13 per unit Raw material issued for manufacture: 3rd January 300 units 5th January 124 units 15th January 250 units 16th January 300 units Raw material returned to stores from manufacturing department on 14th January, 50 units. The material is issued on First-in-First out method. The value of material remaining in store on 21st January will be:

5,775
6,100
6,350
6,600

Detailed SolutionRaw material purchased: 1st January, 600 units @ Rs. 12 per unit 12th January, 500 units @ Rs. 14 per unit 21st January, 300 units @ Rs. 13 per unit Raw material issued for manufacture: 3rd January 300 units 5th January 124 units 15th January 250 units 16th January 300 units Raw material returned to stores from manufacturing department on 14th January, 50 units. The material is issued on First-in-First out method. The value of material remaining in store on 21st January will be:

9. In__________ the workers are paid on the basis of hourly daily,weekly rate

time rate system
piece rate system
premium bonus system
emerson efficiency plan

Detailed SolutionIn__________ the workers are paid on the basis of hourly daily,weekly rate

10. Match the items of List-I with those of List-II. List-I List-II a. Acid test ratio 1. Profitability analysis b. Debt service coverage ratio 2. Activity analysis c. Debt equity ratio 3. Liquidity analysis d. Stock turnover ratio 4. Long-term solvency analysis

a-2, b-1, c-3, d-4
a-2, b-3, c-4, d-1
a-3, b-4, c-1, d-2
a-3, b-1, c-4, d-2

Detailed SolutionMatch the items of List-I with those of List-II. List-I List-II a. Acid test ratio 1. Profitability analysis b. Debt service coverage ratio 2. Activity analysis c. Debt equity ratio 3. Liquidity analysis d. Stock turnover ratio 4. Long-term solvency analysis

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