[amp_mcq option1=”no homogeneous relationship” option2=”homogeneous relationship” option3=”heterogeneous relationship” option4=”an extreme relationship” correct=”option2″]
Costing
2. Factory overhead can be charged on the basis of _______.
[amp_mcq option1=”material cost” option2=”labour cost” option3=”prime cost” option4=”direct expenses” correct=”option3″]
Detailed SolutionFactory overhead can be charged on the basis of _______.
3. When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to . . . . . . . .
[amp_mcq option1=”$${\frac{1}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$” option2=”$${\frac{1}{2}^{{\text{nd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$” option3=”$${\frac{2}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$” option4=”$${\text{Full Notional Profit}}$$” correct=”option2″]
4. Which category of ratios is useful in assessing the capital structure and long-term solvency of a firm?
[amp_mcq option1=”Activity ratio” option2=”Profitability ratio” option3=”Leverage ratio” option4=”Liquidity ratio” correct=”option3″]
5. “What is the company’s breakeven point: Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “
[amp_mcq option1=”8,000 units” option2=”8,333 units” option3=”10,000 units” option4=”10,909 units” correct=”option1″]
6. The allotment of whole item of cost to cost centre or cost units is called _________.
[amp_mcq option1=”cost allocation” option2=”cost apportionment” option3=”cost absorption” option4=”cost disbursement” correct=”option1″]
7. Operating costing is also known as . . . . . . . . costing.
[amp_mcq option1=”service” option2=”batch” option3=”multiple” option4=”job” correct=”option4″]
Detailed SolutionOperating costing is also known as . . . . . . . . costing.
8. Calculate the labour turnover rate according to Separation method from the following: No of workers on the payroll: – At the beginning of the month: 500 – At the end of the month: 600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme
[amp_mcq option1=”4.55%” option2=”1.82%” option3=”6%” option4=”3%” correct=”option1″]
9. Depreciation of plant and machinery is a part of ________.
[amp_mcq option1=”factory overhead” option2=”selling overhead” option3=”distribution overhead” option4=”administration overhead” correct=”option1″]
Detailed SolutionDepreciation of plant and machinery is a part of ________.
10. Situation in which two or more independent variables are highly correlated is known as
[amp_mcq option1=”price linearity” option2=”cost linearity” option3=”division linearity” option4=”multi-collinearity” correct=”option4″]