[amp_mcq option1=”should be charged to costing profit and loss account;” option2=”should not be charged at all” option3=”should be charged to the job directly” option4=”should be charged to the highest profit making department” correct=”option3″]
Costing
2. Which of the following would be included in a cash budget?
[amp_mcq option1=”Patent amortisation” option2=”Goodwill” option3=”Dividends” option4=”Depreciation charges” correct=”option4″]
Detailed SolutionWhich of the following would be included in a cash budget?
3. The method of costing used in a refinery is . . . . . . . . costing.
[amp_mcq option1=”process” option2=”batch” option3=”multiple” option4=”job” correct=”option1″]
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 à Standard rate per hour d. Idle time variance 4. Standard rate (Standard hours – Actual hours worked)
[amp_mcq option1=”a-4, b-3, c-2, d-1″ option2=”a-2, b-3, c-4, d-1″ option3=”a-4, b-1, c-2, d-3″ option4=”a-2, b-1, c-4, d-3″ correct=”option1″]
5. . . . . . . . . is a method of evaluating the job in terms of its money value.
[amp_mcq option1=”Job analysis” option2=”Job evaluation” option3=”Work measurement” option4=”Motion study” correct=”option2″]
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 . . . . . . . .
[amp_mcq option1=”prices rise” option2=”prices fall” option3=”prices fluctuate considerably” option4=”None of these” correct=”option4″]
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
[amp_mcq option1=”cost assignment” option2=”direct assignment” option3=”indirect assignment” option4=”economic assignment” correct=”option1″]
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
[amp_mcq option1=”total cost” option2=”infeasible cost” option3=”fixed cost” option4=”variable cost” correct=”option3″]
9. The costing method which can be used in industry where the product pass through different processes is known as ________.
[amp_mcq option1=”job costing” option2=”operating costing” option3=”batch costing” option4=”process costing” correct=”option4″]
10. If the actual loss is more than the estimated normal loss, then it is _________.
[amp_mcq option1=”abnormal loss” option2=”normal loss” option3=”seasonal loss” option4=”abnormal gain” correct=”option1″]
Detailed SolutionIf the actual loss is more than the estimated normal loss, then it is _________.