Costing

1. Which of the following accounts is similar to the inventory account of a merchandising company?

Raw materials inventory
Work-in-process inventory
Finished goods inventory
Manufacturing inventory

Detailed SolutionWhich of the following accounts is similar to the inventory account of a merchandising company?

2. Costing system, which omits some of journal entries in accounting system is known as

in-time costing
trigger costing
back flush costing
lead time costing

Detailed SolutionCosting system, which omits some of journal entries in accounting system is known as

3. The expenses relating to a particular process is ________.

debited to that process a/c
credited to that process a/c
debited to costing profit and loss a/c
debited to profit and loss a/c

Detailed SolutionThe expenses relating to a particular process is ________.

4. Operating cost is usually ascertained through ________.

a ledger account
profit and loss a/c
balance sheet
a statement

Detailed SolutionOperating cost is usually ascertained through ________.

5. For printing of wedding invitation card the most appropriate costing system is

Process costing
Contract costing
Unit costing
Job costing

Detailed SolutionFor printing of wedding invitation card the most appropriate costing system is

6. Service costing is called as . . . . . . . .

Operation costing
Operating costing
Multiple costing
None of these

Detailed SolutionService costing is called as . . . . . . . .

7. If economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be

16
12
10
14

Detailed SolutionIf economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be

8. Method which allocates cost of support department to only operating departments is called

indirect method
direct method
step down method
reciprocal method

Detailed SolutionMethod which allocates cost of support department to only operating departments is called

9. If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be

$9,000
$8,000
$12,000
$21,000

Detailed SolutionIf static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be

10. If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be

678 packages
648 packages
658 packages
668 packages

Detailed SolutionIf demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be

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