Costing

1. What is the ideal quick ratio?

01:01
02:01
03:01
04:01

Detailed SolutionWhat is the ideal quick ratio?

2. . . . . . . . . aids in price fixation.

Financial accounting
Cost accounting
Management accounting
None of these

Detailed Solution. . . . . . . . aids in price fixation.

3. An assumption of specification analysis states: any observation does not belong to any other observation’s residual value, is classified as

independence of residuals
dependence of residuals
independence of correlation
dependence of residuals

Detailed SolutionAn assumption of specification analysis states: any observation does not belong to any other observation’s residual value, is classified as

4. General profitability ratios are on the basis of

Investments
Sales
Both A and B
None of the above

Detailed SolutionGeneral profitability ratios are on the basis of

5. A company buys 8000 units of an item for its annual requirement. Each unit costs Rs. 10, the ordering cost per order is Rs. 30 and the carrying cost is 7.5% of the average inventory per year. The economic order quantity will be

566 units
800 units
2530 units
900 units

Detailed SolutionA company buys 8000 units of an item for its annual requirement. Each unit costs Rs. 10, the ordering cost per order is Rs. 30 and the carrying cost is 7.5% of the average inventory per year. The economic order quantity will be

6. In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as

over allocated budget
under allocated budget
under allocated indirect cost
over allocated direct cost

Detailed SolutionIn a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as

7. The sum of value of work certified and uncertified appearing in the Contract Account is called . . . . . . . .

Work in Progress
Work in Process
Work Completed
Work Done

Detailed SolutionThe sum of value of work certified and uncertified appearing in the Contract Account is called . . . . . . . .

8. Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to

budget production
planned production
setup production
stand by production

Detailed SolutionBudget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to

9. This is a level at which normal issue of material are stopped, but issued under special condition It is ________.

maximum stock level
minimum stock level
danger level
average stock level

Detailed SolutionThis is a level at which normal issue of material are stopped, but issued under special condition It is ________.

10. Debt equity ratio is a test of

liquidity
profitability
solvency
turnover

Detailed SolutionDebt equity ratio is a test of

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