[amp_mcq option1=”Accounting for fixed assets” option2=”Accounting treatment for goodwill” option3=”Depreciation accounting” option4=”Disclosure of accounting policies” correct=”option3″]
Costing
2. Higher level of production leads to
[amp_mcq option1=”higher repair cost” option2=”higher setup cost” option3=”lower repair cost” option4=”higher setup cost” correct=”option2″]
3. Number of worker employed is used as basis for the apportionment of ________.
[amp_mcq option1=”rent” option2=”canteen expenses” option3=”PF contribution” option4=”rate and tax” correct=”option3″]
Detailed SolutionNumber of worker employed is used as basis for the apportionment of ________.
4. A company proposes to introduce a new product in the market. The company wants to maintain P/V ratio at 25%. If variable cost of the product is Rs. 300, then what will be the selling price?
[amp_mcq option1=”Rs. 100″ option2=”Rs. 200″ option3=”Rs. 300″ option4=”Rs. 400″ correct=”option4″]
5. In normal costing, manufacturing overhead allocated is also called
[amp_mcq option1=”manufacturing overhead applied” option2=”labour overhead applied” option3=”cost overhead applied” option4=”budget overhead applied” correct=”option1″]
Detailed SolutionIn normal costing, manufacturing overhead allocated is also called
6. Indirect materials can be apportioned on the basis of ________.
[amp_mcq option1=”direct material” option2=”prime cost” option3=”direct labour hour” option4=”machine hour” correct=”option4″]
Detailed SolutionIndirect materials can be apportioned on the basis of ________.
7. Allotment of overhead to cost unit is called
[amp_mcq option1=”Cost Allocation” option2=”Cost Apportionment” option3=”Cost Absorption” option4=”Cost Classification” correct=”option2″]
Detailed SolutionAllotment of overhead to cost unit is called
8. Cost Accounting has been developed because of . . . . . . . . of Financial Accounting.
[amp_mcq option1=”Limitations” option2=”Advantages” option3=”Both A and B” option4=”None of these” correct=”option1″]
9. Systematic flow of services, goods or information from buying material for product delivery to customers is known as
[amp_mcq option1=”supply chain” option2=”value chain” option3=”material flow chain” option4=”manufacturing flow chain” correct=”option1″]
10. Cost of goods sold is calculated:
[amp_mcq option1=”Cost of production + opening stock of finished goods – closing stock of finished goods” option2=”Prime cost + factory overhead cost + work in progress at the beginning – works in progress closing” option3=”Opening stock of raw materials + purchase of raw materials – closing stock of raw materials” option4=”Cost of production + administrative expenses + work in progress closing – work in progress beginning E. Opening stock of work in progress + opening stock of finished goods + works expenses – closing stock of finished goods” correct=”option1″]