[amp_mcq option1=”245.1724″ option2=”255.1724″ option3=”278.1724″ option4=”268.1724″ correct=”option3″]
Costing
2. Fancy packing is an example of . . . . . . . . expenses.
[amp_mcq option1=”selling” option2=”distribution” option3=”administration” option4=”factory” correct=”option1″]
Detailed SolutionFancy packing is an example of . . . . . . . . expenses.
3. In incremental cost allocation method, cost object user who is ranked second in ranking order is known as
[amp_mcq option1=”First incremental user” option2=”primary user” option3=”secondary user” option4=”second incremental user” correct=”option4″]
4. Under Merrick’s multiple piece rate system, 120% of the ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.
[amp_mcq option1=”83% and 100%” option2=”100% and 120%” option3=”0% and 83%” option4=”None of these” correct=”option1″]
5. Assertion (A): From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R): If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.
[amp_mcq option1=”Both (A) and (R) are correct” option2=”(A) is correct, but (R) is incorrect” option3=”(A) is incorrect, but (R) is correct” option4=”Both (A) and (R) are incorrect” correct=”option2″]
6. An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as
[amp_mcq option1=”coordinating company effort” option2=”action plan” option3=”action accountability” option4=”project accountability” correct=”option3″]
7. Differential piece wages means _______.
[amp_mcq option1=”different wages for different level of performance” option2=”different wages for different time consumed” option3=”different wages for different level of output” option4=”different wages for different types of industries” correct=”option1″]
8. Assertion (A): Only the relevant costs should be taken into consideration for decision-making. Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.
[amp_mcq option1=”Both (A) and (R) are correct” option2=”(A) is correct, but (R) is incorrect” option3=”(R) is correct, but (A) is incorrect” option4=”Both (A) and (R) are incorrect” correct=”option2″]
9. The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs 50,000 and Rs 65,000. If taxed paid during the current year amounted to Rs 70,000 then amount charge from Profit and Loss Account will be:
[amp_mcq option1=”Rs 55,000″ option2=”Rs 85,000″ option3=”Rs 45,000″ option4=”Rs 1,85,000″ correct=”option1″]
10. The cost formula acceptable under AS-2 for inventory valuation is
[amp_mcq option1=”FIFO” option2=”LIFO” option3=”HIFO” option4=”Normal average” correct=”option1″]
Detailed SolutionThe cost formula acceptable under AS-2 for inventory valuation is