Costing

1. Study 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

I, II, III and IV
II, III and IV
III and IV
Only IV

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

2. . . . . . . . . is a post mortem of past costs.

Financial accounting
Cost accounting
Both A and B
None of these

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

3. Costing system, in which individual activities are identified as cost object is considered as

manufactured costing
activity based costing
allocation costing
base costing

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

4. A technique which minimizes sum of squared vertical difference, to determine regression line is considered as

negative square technique
positive square technique
least square technique
most square technique

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

5. What 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?

Rs. 1,00,000
Rs. 75,000
Rs. 55,000
Rs. 20,000

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?

6. The process of explaining the meaning, significance, and relationship between two financial factors is called

Summarization
Analysis
Interpretation
None of the above

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

7. In cost accounting, conference, quantitative analysis and account analysis methods are considered as

cost estimation methods
price estimation methods
unit estimation method
variable estimation method

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

8. Blanket overhead rate is:

One single overhead absorption rate for the whole factory
Rate which is blank or nil rate
rate in which multiple overhead rates are calculated for each production department, service department etc
Always a machine hour rate

Detailed SolutionBlanket overhead rate is:

9. The collection of debtors

Decreases the current ratio
Increases the current ratio
Does not affect the current ratio
None of the above

Detailed SolutionThe collection of debtors

10. The basis for determining profit to be taken into account on incomplete contract is ________.

cost of contract
contract price
percentage of work certified as done
uncertified work

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

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