Costing

1. If overtime is resorted to at the desire of the customer, then the overtime premium:

should be charged to costing profit and loss account;
should not be charged at all
should be charged to the job directly
should be charged to the highest profit making department

Detailed SolutionIf overtime is resorted to at the desire of the customer, then the overtime premium:

2. Which of the following would be included in a cash budget?

Patent amortisation
Goodwill
Dividends
Depreciation charges

Detailed SolutionWhich of the following would be included in a cash budget?

3. The method of costing used in a refinery is . . . . . . . . costing.

process
batch
multiple
job

Detailed SolutionThe method of costing used in a refinery is . . . . . . . . costing.

4. Match the following. List-I List-II a. Labour cost variance 1. Actual hours paid (Standard rate – Actual rate) b. Labour rate variance 2. Standard cost – Actual cost c. Efficiency variance 3. Idle hours × Standard rate per hour d. Idle time variance 4. Standard rate (Standard hours – Actual hours worked)

a-4, b-3, c-2, d-1
a-2, b-3, c-4, d-1
a-4, b-1, c-2, d-3
a-2, b-1, c-4, d-3

Detailed SolutionMatch the following. List-I List-II a. Labour cost variance 1. Actual hours paid (Standard rate – Actual rate) b. Labour rate variance 2. Standard cost – Actual cost c. Efficiency variance 3. Idle hours × Standard rate per hour d. Idle time variance 4. Standard rate (Standard hours – Actual hours worked)

5. . . . . . . . . is a method of evaluating the job in terms of its money value.

Job analysis
Job evaluation
Work measurement
Motion study

Detailed Solution. . . . . . . . is a method of evaluating the job in terms of its money value.

6. Average cost method of valuing material issues is suitable when . . . . . . . .

prices rise
prices fall
prices fluctuate considerably
None of these

Detailed SolutionAverage cost method of valuing material issues is suitable when . . . . . . . .

7. Process of tracing direct costs and allocation of indirect costs is known as

cost assignment
direct assignment
indirect assignment
economic assignment

Detailed SolutionProcess of tracing direct costs and allocation of indirect costs is known as

8. Cost which remains unchanged, in proportion to level total volume of production is classified as

total cost
infeasible cost
fixed cost
variable cost

Detailed SolutionCost which remains unchanged, in proportion to level total volume of production is classified as

9. The costing method which can be used in industry where the product pass through different processes is known as ________.

job costing
operating costing
batch costing
process costing

Detailed SolutionThe costing method which can be used in industry where the product pass through different processes is known as ________.

10. If the actual loss is more than the estimated normal loss, then it is _________.

abnormal loss
normal loss
seasonal loss
abnormal gain

Detailed SolutionIf the actual loss is more than the estimated normal loss, then it is _________.

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23Test 24