Costing

[amp_mcq option1=”$1,200″ option2=”$1,400″ option3=”$1,600″ option4=”$1,800″ correct=”option3″]

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

[amp_mcq option1=”Current assets – Stock – Prepaid expenses” option2=”Current assets + Stock + Prepaid expenses” option3=”Current assets + Prepaid expenses” option4=”None of the above” correct=”option3″]

Detailed SolutionLiquid assets is determined by

[amp_mcq option1=”total cost” option2=”total revenue” option3=”no profit no loss” option4=”contribution” correct=”option3″]

Detailed SolutionBreak-even point is also known as . . . . . . . . point.

[amp_mcq option1=”a-2, b-4, c-3, d-1″ option2=”a-3, b-2, c-1, d-4″ option3=”a-3, b-1, c-4, d-2″ option4=”a-4, b-3, c-2, d-1″ correct=”option3″]

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 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

[amp_mcq option1=”Fixed assets” option2=”Investments” option3=”Raw material to be issued” option4=”All of these” correct=”option3″]

Detailed SolutionFIFO and LIFO are valuation method of-

[amp_mcq option1=”flexible budget” option2=”fixed budget” option3=”variable budget” option4=”multiplied budget” correct=”option1″]

Detailed SolutionBudget which calculates expected revenues and expected costs, based on actual output quantity is named as

[amp_mcq option1=”Costreduction” option2=”Costcontrol” option3=”Costunit” option4=”Costcentre” correct=”option1″]

Detailed Solution________ is a preventive function.

[amp_mcq option1=”Percentage on selling cost” option2=”Percentage on factory cost” option3=”Per unit rate” option4=”None of these” correct=”option3″]

Detailed SolutionOn what basis are the selling and distribution overheads absorbed?

[amp_mcq option1=”Sound financial position” option2=”Weak financial position” option3=”Both A and B” option4=”None of these” correct=”option2″]

Detailed SolutionWhat does a low proprietary ratio indicates?

[amp_mcq option1=”LIFO” option2=”FIFO” option3=”Simple Average Method” option4=”Inflated Price Method” correct=”option1″]

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