Costing

[amp_mcq option1=”standard error of estimated coefficient” option2=”weighted error of estimated coefficient” option3=”average of estimated coefficient” option4=”variance of estimated coefficient” correct=”option1″]

Detailed SolutionAn estimated coefficient, which indicates degree by which estimated values are affected by random factors is known as

[amp_mcq option1=”materials are subject to natural wastage” option2=”prices rise” option3=”prices fall” option4=”None of these” correct=”option1″]

Detailed SolutionInflated price method of valuing material issues is suitable when . . . . . . . .

[amp_mcq option1=”Rs. 22 (favourable)” option2=”Rs. 22 (unfavourable)” option3=”Rs. 12 (favourable)” option4=”Rs. 12 (unfavourable)” correct=”option4″]

Detailed SolutionProduct A requires 10 kg of material at the rate of Rs. 5 per kg. The actual consumption of material for the manufacturing of product A comes to 12 kg of material at the rate of Rs. 6 per kg. Direct material cost variance is

[amp_mcq option1=”310″ option2=”400″ option3=”290″ option4=”300″ correct=”option1″]

Detailed Solution“Calculate EOQ (approx) from the following details: Annual Consumption: 24000 units Ordering cost: Rs 10 per order Purchase price: Rs 100 per unit Carrying cost: 5%”

[amp_mcq option1=”Rs. 60,000″ option2=”Rs. 80,000″ option3=”Rs. 1,00,000″ option4=”Rs. 1,20,000″ correct=”option3″]

Detailed SolutionWhat are the current assets if the current ratio is 2.5, liquid ratio is 1.5, and the working capital is Rs. 60,000?

[amp_mcq option1=”8 times” option2=”6 times” option3=”9 times” option4=”10 times” correct=”option3″]

Detailed Solution“For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be” :-

[amp_mcq option1=”discrete amounts” option2=”same amounts” option3=”linear amounts” option4=”nonlinear amounts” correct=”option1″]

Detailed SolutionIn step cost functions, cost is increased by

[amp_mcq option1=”Perpetual inventory” option2=”LIFO” option3=”FIFO” option4=”Average cost” correct=”option3″]

Detailed SolutionWhich inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?

[amp_mcq option1=”split-off units” option2=”equivalent units” option3=”converted units” option4=”equitable units” correct=”option2″]

Detailed SolutionWhen partially completed units are converted to a comparable number of completed units, they are referred to as

[amp_mcq option1=”debited to contract a/c” option2=”credited to contract a/c” option3=”debited to contractor a/c” option4=”debited to profit and loss a/c” correct=”option1″]

Detailed SolutionWork uncertified is ________.