Costing

1. Examples of nonlinear cost functions are

step constant functions
step cost functions
step price functions
step object functions

Detailed SolutionExamples of nonlinear cost functions are

2. Abnormal loss and its value are _______.

debited to process a/c
credited to process a/c
debited to costing profit and loss a/c
debited to profit and loss a/c

Detailed SolutionAbnormal loss and its value are _______.

3. Which technique, used for figures of two or more periods, is placed side by side to facilitate easy and meaningful comparisons?

Comparative statement
Common-size statement
Trend analysis
None of the above

Detailed SolutionWhich technique, used for figures of two or more periods, is placed side by side to facilitate easy and meaningful comparisons?

4. Sundry overhead expenses may be apportioned in the ratio of ________.

material consumed
number of employees
labour hours
machine hours

Detailed SolutionSundry overhead expenses may be apportioned in the ratio of ________.

5. The type of standard best suitable for cost control purpose is:

Basic standard
Ideal standard
Normal standard
Expected standard

Detailed SolutionThe type of standard best suitable for cost control purpose is:

6. If difference in costs is $7000 and difference in machine hours of is $18000, then slope coefficient would be

2.571
0.39
0.2571
3.39

Detailed SolutionIf difference in costs is $7000 and difference in machine hours of is $18000, then slope coefficient would be

7. Total costs incur in a production process, is divided by total number of output units to calculate the

cost of indirect labour
cost of direct labour
cost of direct material
unit costs

Detailed SolutionTotal costs incur in a production process, is divided by total number of output units to calculate the

8. For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be:

40
37.5
35
None of these

Detailed SolutionFor a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be:

9. Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

economic accounting
back-flush accounting
lean accounting
lead accounting

Detailed SolutionMethod of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

10. Appropriate basis for apportionment of material handling charges is ________.

material purchased
material in stock
material consumed
material wasted

Detailed SolutionAppropriate basis for apportionment of material handling charges is ________.

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