[amp_mcq option1=”per litre” option2=”per tonne” option3=”per acre” option4=”per metre” correct=”option2″]
Detailed SolutionCost unit of a sugar industry can be ________.
Costing
2. Component of total cost, which never changes with change in level of production is classified as
[amp_mcq option1=”fixed cost” option2=”constant” option3=”variable” option4=”both a and b” correct=”option1″]
3. Under piece rate system of wage payment, payment is made according to the . . . . . . . .
[amp_mcq option1=”quantity of work done” option2=”time” option3=”Both A and B” option4=”None of these” correct=”option1″]
4. Idle capacity of a plant refers to the difference between ________.
[amp_mcq option1=”maximum capacity and practical capacity” option2=”practical capacity and normal capacity” option3=”practical capacity and capacity based on sales expectancy” option4=”maximum capacity and actual capacity” correct=”option4″]
Detailed SolutionIdle capacity of a plant refers to the difference between ________.
5. The use of FIFO method is suitable for
[amp_mcq option1=”Incase of increase in price” option2=”Incase of falling price” option3=”Incase of fixed price” option4=”None of these” correct=”option1″]
6. Factor which provides hedge to managers in adverse and unexpected circumstances is known as
[amp_mcq option1=”budgetary slack” option2=”costly slack” option3=”influential slack” option4=”target slack” correct=”option1″]
7. For conducting . . . . . . . . workers are studied at their jobs and all their movements and motions are noted.
[amp_mcq option1=”time study” option2=”motion study” option3=”merit rating” option4=”None of these” correct=”option2″]
8. Assertion (A) Increasing the value of closing inventory increases profit. Reason (R) Increasing the value of closing inventory reduces cost of goods sold.
[amp_mcq option1=”Both (A) and (R) are true” option2=”(A) is true, but (R) is false” option3=”(A) is false, but (R) is true” option4=”Both (A) and (R) are false” correct=”option2″]
9. Cost of abnormal spoilage is not treated as
[amp_mcq option1=”conversion costs” option2=”sunk costs” option3=”inventoriable costs” option4=”non inventoriable costs” correct=”option4″]
Detailed SolutionCost of abnormal spoilage is not treated as
10. Which of the following statements is true about estimated costs and standard costs?
[amp_mcq option1=”Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis” option2=”Standard cost emphasis is on ‘what cost will be’, while estimated cost emphasis is on ‘what cost should be'” option3=”Standard costs are frequently revised compared to the estimated cost” option4=”Estimated costs are stable than standard costs” correct=”option2″]
Detailed SolutionWhich of the following statements is true about estimated costs and standard costs?