Costing

[amp_mcq option1=”I, II, III and IV” option2=”II, III and IV” option3=”III and IV” option4=”Only IV” correct=”option4″]

Detailed SolutionStudy the following transactions I. Raising of short-term loans II. Goods purchased for cash III. Payment of bonus in the form of shares IV. Issue of shares in lieu of raw materials The flow of funds is

[amp_mcq option1=”Financial accounting” option2=”Cost accounting” option3=”Both A and B” option4=”None of these” correct=”option2″]

Detailed Solution. . . . . . . . is a post mortem of past costs.

[amp_mcq option1=”manufactured costing” option2=”activity based costing” option3=”allocation costing” option4=”base costing” correct=”option2″]

Detailed SolutionCosting system, in which individual activities are identified as cost object is considered as

[amp_mcq option1=”negative square technique” option2=”positive square technique” option3=”least square technique” option4=”most square technique” correct=”option3″]

Detailed SolutionA technique which minimizes sum of squared vertical difference, to determine regression line is considered as

[amp_mcq option1=”Rs. 1,00,000″ option2=”Rs. 75,000″ option3=”Rs. 55,000″ option4=”Rs. 20,000″ correct=”option1″]

Detailed SolutionWhat is the amount of fixed cost if the margin of safety is Rs. 80,000 profit is Rs. 20,000, and sales is Rs. 3,00,000?

[amp_mcq option1=”Summarization” option2=”Analysis” option3=”Interpretation” option4=”None of the above” correct=”option3″]

Detailed SolutionThe process of explaining the meaning, significance, and relationship between two financial factors is called

[amp_mcq option1=”cost estimation methods” option2=”price estimation methods” option3=”unit estimation method” option4=”variable estimation method” correct=”option1″]

Detailed SolutionIn cost accounting, conference, quantitative analysis and account analysis methods are considered as

[amp_mcq option1=”One single overhead absorption rate for the whole factory” option2=”Rate which is blank or nil rate” option3=”rate in which multiple overhead rates are calculated for each production department, service department etc” option4=”Always a machine hour rate” correct=”option1″]

Detailed SolutionBlanket overhead rate is:

[amp_mcq option1=”Decreases the current ratio” option2=”Increases the current ratio” option3=”Does not affect the current ratio” option4=”None of the above” correct=”option2″]

Detailed SolutionThe collection of debtors

[amp_mcq option1=”cost of contract” option2=”contract price” option3=”percentage of work certified as done” option4=”uncertified work” correct=”option3″]

Detailed SolutionThe basis for determining profit to be taken into account on incomplete contract is ________.