Costing

1. Model which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as

incremental unit average model
incremental cost learning model
incremental unit time learning model
incremental price learning model

Detailed SolutionModel which states decline in extra time needed to produce last unit, every time for cumulative quantity of doubled units produced is classified as

2. Sale of investment in marketable securities implies

a sources of funds
an application of funds
no flow of funds
None of these

Detailed SolutionSale of investment in marketable securities implies

3. A company’s break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company’s annual fixed costs?

Rs 120
Rs 2,40,000
Rs 3,00,000
Rs 5,40,000

Detailed SolutionA company’s break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company’s annual fixed costs?

4. The process costing is not used in one of the following:

chemical
textiles
cement
oil refining

Detailed SolutionThe process costing is not used in one of the following:

5. In plotting cost functions, number of machine hours and batches are represented on

unit axis
term axis
x-axis
y-axis

Detailed SolutionIn plotting cost functions, number of machine hours and batches are represented on

6. High-low method is used for estimation of

linear coefficient
cost coefficient
slope coefficient
price coefficient

Detailed SolutionHigh-low method is used for estimation of

7. Merricks multiple piece rate system has _______.

two rates
three rates
four rates
five rates

Detailed SolutionMerricks multiple piece rate system has _______.

8. Continuous material check is a part of which of the following?

Annual material check
Continuous inventory method
A.B.C. Analysis
Economic order quantity

Detailed SolutionContinuous material check is a part of which of the following?

9. Cost influences by responsibility center manager who is considered as

manager cost
influential cost
center cost
controllable cost

Detailed SolutionCost influences by responsibility center manager who is considered as

10. What does a low stock turnover indicates?

Managerial efficiency
Solvency
Over-investment in stock
All of these

Detailed SolutionWhat does a low stock turnover indicates?

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