Costing

1. Accounting Standard-6 is meant for

Accounting for fixed assets
Accounting treatment for goodwill
Depreciation accounting
Disclosure of accounting policies

Detailed SolutionAccounting Standard-6 is meant for

2. Higher level of production leads to

higher repair cost
higher setup cost
lower repair cost
higher setup cost

Detailed SolutionHigher level of production leads to

3. Number of worker employed is used as basis for the apportionment of ________.

rent
canteen expenses
PF contribution
rate and tax

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?

Rs. 100
Rs. 200
Rs. 300
Rs. 400

Detailed SolutionA 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?

5. In normal costing, manufacturing overhead allocated is also called

manufacturing overhead applied
labour overhead applied
cost overhead applied
budget overhead applied

Detailed SolutionIn normal costing, manufacturing overhead allocated is also called

6. Indirect materials can be apportioned on the basis of ________.

direct material
prime cost
direct labour hour
machine hour

Detailed SolutionIndirect materials can be apportioned on the basis of ________.

7. Allotment of overhead to cost unit is called

Cost Allocation
Cost Apportionment
Cost Absorption
Cost Classification

Detailed SolutionAllotment of overhead to cost unit is called

8. Cost Accounting has been developed because of . . . . . . . . of Financial Accounting.

Limitations
Advantages
Both A and B
None of these

Detailed SolutionCost Accounting has been developed because of . . . . . . . . of Financial Accounting.

9. Systematic flow of services, goods or information from buying material for product delivery to customers is known as

supply chain
value chain
material flow chain
manufacturing flow chain

Detailed SolutionSystematic flow of services, goods or information from buying material for product delivery to customers is known as

10. Cost of goods sold is calculated:

Cost of production + opening stock of finished goods - closing stock of finished goods
Prime cost + factory overhead cost + work in progress at the beginning - works in progress closing
Opening stock of raw materials + purchase of raw materials - closing stock of raw materials
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

Detailed SolutionCost of goods sold is calculated:

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