[amp_mcq option1=”goodness of each activity” option2=”handling of each activity” option3=”cost driver for each activity” option4=”cost object for each activity” correct=”option3″]
Costing
2. Stock verification sheets are maintained to record the results of . . . . . . . .
[amp_mcq option1=”physical verification” option2=”financial control” option3=”financial verification” option4=”quality verification” correct=”option1″]
Detailed SolutionStock verification sheets are maintained to record the results of . . . . . . . .
3. Material price variance = Actual usage (. . . . . . . .)
[amp_mcq option1=”Standard price” option2=”Standard unit price – actual unit price” option3=”Actual price” option4=”Standard usage” correct=”option2″]
Detailed SolutionMaterial price variance = Actual usage (. . . . . . . .)
4. If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be
[amp_mcq option1=”$30,000″ option2=”$300,000″ option3=”$40,000″ option4=”$400,000″ correct=”option1″]
5. Perpetual inventory system involves __________
[amp_mcq option1=”bincard and stores ledger” option2=”bill of material and material requisition” option3=”purchase requisition and purchase order” option4=”inward and outward invoices” correct=”option1″]
Detailed SolutionPerpetual inventory system involves __________
6. Costing, which explains how and when scrap affects operating income of company is classified as
[amp_mcq option1=”inventory costing” option2=”conversion costing” option3=”normal scrap costing” option4=”abnormal scrap costing” correct=”option4″]
7. Allotment of whole item of cost to a cost centre or cost unit is known as:
[amp_mcq option1=”Cost Apportionment” option2=”Cost Allocation” option3=”Cost Absorption” option4=”Machine hour rate” correct=”option1″]
Detailed SolutionAllotment of whole item of cost to a cost centre or cost unit is known as:
8. When prices are rising, the stock should be valued under:
[amp_mcq option1=”FIFO method” option2=”LIFO method” option3=”General average method” option4=”Weighted average method” correct=”option1″]
Detailed SolutionWhen prices are rising, the stock should be valued under:
9. If budgeted total direct labour hours are 3800 and budgeted direct labour cost is $480000, then budgeted direct labour cost rate will be
[amp_mcq option1=”$126.32 per labour hour” option2=”$128.32 per labour hour” option3=”$130 per labour hour” option4=”$132 per labour hour” correct=”option1″]
10. If the current ratio is 2 : 1 and working capital is Rs. 60,000. What is the value of the current assets?
[amp_mcq option1=”Rs. 60,000″ option2=”Rs. 1,00,000″ option3=”Rs. 1,20,000″ option4=”Rs. 1,80,000″ correct=”option2″]