Costing

1. Consider the data below and answer the questions based on it. Factory Expenses = Rs. 30000 Administrative Expenses = Rs. 20000 Labour Cost = Rs. 25000 Materials = Rs. 35000 Selling Expenses = Rs. 10000 Ascertain the prime cost with the help of the given cost data.

Rs. 50000
Rs. 60000
Rs. 70000
Rs. 80000 E. Rs. 90000

Detailed SolutionConsider the data below and answer the questions based on it. Factory Expenses = Rs. 30000 Administrative Expenses = Rs. 20000 Labour Cost = Rs. 25000 Materials = Rs. 35000 Selling Expenses = Rs. 10000 Ascertain the prime cost with the help of the given cost data.

2. Costing and cost accounting are . . . . . . . .

not the same
one and the same
not related at all
None of these

Detailed SolutionCosting and cost accounting are . . . . . . . .

3. Insurance and garage rent is ________.

fixed charges
maintenance charges
operating charges
running charges

Detailed SolutionInsurance and garage rent is ________.

4. When the actual overhead is less than the absorbed overhead it is ________.

over absorption
under absorption
equal absorption
major absorption

Detailed SolutionWhen the actual overhead is less than the absorbed overhead it is ________.

5. Better administration of budget in budgeting plans require

intelligent interpretations
participation
persuasion
all of above

Detailed SolutionBetter administration of budget in budgeting plans require

6. Bad debt is an example of ________.

production overhead
administrative overhead
selling overhead
distribution overhead

Detailed SolutionBad debt is an example of ________.

7. Larger number of manager subordinates and higher level manager are termed as

activity subordinates
broader responsibility center
broader subordinates
activity ordinates

Detailed SolutionLarger number of manager subordinates and higher level manager are termed as

8. Calendar Ratio =

$$ rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$
$$ rac{{{ ext{Actual hours worked}}}}{{{ ext{Budgeted hours}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionCalendar Ratio =

9. If beginning work-in-process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work-in-process equivalent units are 5000 units, then complete equivalent units 8 in current period are

1800 units
1500 units
1300 units
1000 units

Detailed SolutionIf beginning work-in-process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work-in-process equivalent units are 5000 units, then complete equivalent units 8 in current period are

10. Which of the following is a service department?

Refining department
Machining department
Receiving department
Finishing department

Detailed SolutionWhich of the following is a service department?

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