Costing

1. Type of accounting, which focuses on whom should be asked for information and whom not will be categorized as

focused accounting
responsibility accounting
information accounting
blame accounting

Detailed SolutionType of accounting, which focuses on whom should be asked for information and whom not will be categorized as

2. The ordinary trading account is a locked storehouse of most valuable information to which cost system is the . . . . . . . .

key
lock
house
None of these

Detailed SolutionThe ordinary trading account is a locked storehouse of most valuable information to which cost system is the . . . . . . . .

3. When output of earlier process is transferred at a profit to the subsequent process, it is ________.

inter departmental profit
abnormal gain
inter process profit
manufacturing profit

Detailed SolutionWhen output of earlier process is transferred at a profit to the subsequent process, it is ________.

4. In electricity supply company uses . . . . . . . . as cost unit.

kilo watt hour
per household
voltage
None of these

Detailed SolutionIn electricity supply company uses . . . . . . . . as cost unit.

5. Method, which allocates cost of support department to operating and support departments is known as

indirect method
direct method
step down method
reciprocal method

Detailed SolutionMethod, which allocates cost of support department to operating and support departments is known as

6. Taylors differential piece rate system provides for higher rate to . . . . . . . . workers.

inefficient
efficient
Both A and B
lazy

Detailed SolutionTaylors differential piece rate system provides for higher rate to . . . . . . . . workers.

7. Normal spoilage is subtracted from total spoilage to calculate

abnormal spoilage
Gross weighted spoilage
inventoriable spoilage
partial spoilage

Detailed SolutionNormal spoilage is subtracted from total spoilage to calculate

8. In linear cost function, which is y = a + bx, y is classified as

predicted fixed cost
predicted variable cost
predicted cost
predicted price

Detailed SolutionIn linear cost function, which is y = a + bx, y is classified as

9. If slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be

$68,700
$58,700
$30,000
$83,333.34

Detailed SolutionIf slope coefficient is 0.60 and difference in machine hours is 50000, then difference in cost can be

10. Match the following. List-I List-II a. Debtor’s turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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

Detailed SolutionMatch the following. List-I List-II a. Debtor’s turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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