[amp_mcq option1=”$13,500″ option2=”$55,600″ option3=”$60,000″ option4=”$110,000″ correct=”option3″]
Costing
2. Which of the following is not a cash outflow?
[amp_mcq option1=”Increase in creditors” option2=”Increase in debtors” option3=”Increase in stock” option4=”Increase in bills receivable” correct=”option3″]
Detailed SolutionWhich of the following is not a cash outflow?
3. Degree of influence that a manager would have on revenues, cost, profit and investment is known as
[amp_mcq option1=”controllability” option2=”influential power” option3=”responsibility” option4=”all of above” correct=”option4″]
4. Slope coefficient is 0.75 and difference in machine hours is 65000 then difference in cost would be
[amp_mcq option1=”$86,667″ option2=”$48,750″ option3=”$85,000″ option4=”$55,000″ correct=”option1″]
5. The material utilization rate is the most important factor in determining which of the following?
[amp_mcq option1=”Maximum Limit” option2=”Minimum Limit” option3=”Re-ordering level” option4=”All of the above” correct=”option4″]
6. Direct labour and salary outlays direct material purchases, which are classified as
[amp_mcq option1=”price disbursements” option2=”cash disbursements” option3=”budget disbursements” option4=”goods disbursements” correct=”option1″]
Detailed SolutionDirect labour and salary outlays direct material purchases, which are classified as
7. . . . . . . . . obviates the necessity for the physical checking of all items of stores at the end of the year and thereby avoids dislocation of production.
[amp_mcq option1=”ABC Analysis” option2=”JIT Inventory System” option3=”VED Analysis” option4=”Perpetual Inventory System” correct=”option4″]
8. Which one of the following cost would not be termed as product costs?
[amp_mcq option1=”Administrative salaries” option2=”Direct labour” option3=”Indirect material” option4=”Plant supervisor’s salary” correct=”option1″]
Detailed SolutionWhich one of the following cost would not be termed as product costs?
9. The purpose of financial accounting is to provide information for ________.
[amp_mcq option1=”fixing prices” option2=”controlling cost” option3=”locating factors leading to wastages and losses” option4=”assessing the profitability and financial position of the firm” correct=”option4″]
Detailed SolutionThe purpose of financial accounting is to provide information for ________.
10. An approach in which company under-costs it’s one product and over-costs at least one product is classified as
[amp_mcq option1=”service-cost across subsidizing” option2=”product-price cross subsidizing” option3=”product-cost cross subsidizing” option4=”product cross subsidizing” correct=”option3″]