Costing

1. If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

$1,200
$1,400
$1,600
$1,800

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$36000 and observation of cost driver is 30 machine hours, then slope coefficient would be" class="read-more button" href="https://exam.pscnotes.com/mcq/if-difference-between-costs-linked-to-highest-and-lowest-observation-of-cost-driver-is-36000-and-observation-of-cost-driver-is-30-machine-hours-then-slope-coefficient-would-be/#more-51812">Detailed SolutionIf difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

2. Liquid assets is determined by

Current assets - Stock - Prepaid expenses
Current assets + Stock + Prepaid expenses
Current assets + Prepaid expenses
None of the above

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determined by" class="read-more button" href="https://exam.pscnotes.com/mcq/liquid-assets-is-determined-by/#more-51811">Detailed SolutionLiquid assets is determined by

3. Break-even point is also known as . . . . . . . . point.

total cost
total revenue
no profit no loss
contribution

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. . . . . point." class="read-more button" href="https://exam.pscnotes.com/mcq/break-even-point-is-also-known-as-point/#more-51768">Detailed SolutionBreak-even point is also known as . . . . . . . . point.

4. Match the items of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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

Detailed SolutionMatch the items of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio

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288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

5. FIFO and LIFO are valuation method of-

Fixed assets
Investments
Raw material to be issued
All of these

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button" href="https://exam.pscnotes.com/mcq/fifo-and-lifo-are-valuation-method-of/#more-51727">Detailed SolutionFIFO and LIFO are valuation method of-

6. Budget which calculates expected revenues and expected costs, based on actual output quantity is named as

flexible budget
fixed budget
variable budget
multiplied budget

Detailed SolutionBudget which calculates

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expected revenues and expected costs, based on actual output quantity is named as

7. ________ is a preventive function.

Costreduction
Costcontrol
Costunit
Costcentre

Detailed Solution________ is a

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preventive function.

8. On what basis are the selling and distribution overheads absorbed?

Percentage on selling cost
Percentage on factory cost
Per unit rate
None of these

Detailed Solution

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class="screen-reader-text">On what basis are the selling and distribution overheads absorbed?

9. What does a low proprietary ratio indicates?

Sound financial position
Weak financial position
Both A and B
None of these

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proprietary ratio indicates?" class="read-more button" href="https://exam.pscnotes.com/mcq/what-does-a-low-proprietary-ratio-indicates/#more-51658">Detailed SolutionWhat does a low proprietary ratio indicates?

10. During a period of rising prices, which of the following inventory pricing methods tends to produce higher cost of goods sold?

LIFO
FIFO
Simple Average Method
Inflated Price Method

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288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube goods sold?" class="read-more button" href="https://exam.pscnotes.com/mcq/during-a-period-of-rising-prices-which-of-the-following-inventory-pricing-methods-tends-to-produce-higher-cost-of-goods-sold/#more-51601">Detailed SolutionDuring a period of rising prices, which of the following inventory pricing methods tends to produce higher cost of goods sold?

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