[amp_mcq option1=”Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period” option2=”Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period” option3=”Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion” option4=”Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period” correct=”option1″]
Costing
112. The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:
[amp_mcq option1=”Abnormal Cost” option2=”Marginal Cost” option3=”Fixed Cost” option4=”Semi Variable Cost E. Sunk Cost” correct=”option2″]
113. Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as
[amp_mcq option1=”step down allocation method” option2=”stand-alone revenue allocation method” option3=”incremental revenue allocation method” option4=”revenue mix allocation method” correct=”option3″]
114. Which of the following statements is true about standard labour time?
[amp_mcq option1=”Standard labour time indicates the time in hours needed for a specific process” option2=”It is standardized on the basis of past experience” option3=”In fixing standard time, due allowance should not be given to fatigue and tool setting” option4=”The production manager does not provide any input in setting the labour time standards” correct=”option1″]
Detailed SolutionWhich of the following statements is true about standard labour time?
115. Efficiency Ratio =
[amp_mcq option1=”$$\frac{{{\text{Number of actual working days in a period}}}}{{{\text{Number of working days in the budget period}}}} \times 100$$” option2=”$$\frac{{{\text{Actual hours worked}}}}{{{\text{Budgeted hours}}}} \times 100$$” option3=”$$\frac{{{\text{Standard hours for actual production}}}}{{{\text{Actual hours worked}}}} \times 100$$” option4=”$$\frac{{{\text{Standard hours for actual production}}}}{{{\text{Budgeted standard hours}}}} \times 100$$” correct=”option3″]
116. An overtime is considered in cost accounting as
[amp_mcq option1=”indirect costs” option2=”overhead costs” option3=”premium costs” option4=”both a and b” correct=”option4″]
Detailed SolutionAn overtime is considered in cost accounting as
117. . . . . . . . . Accounting provides information for cost control.
[amp_mcq option1=”Financial” option2=”Cost” option3=”Human Resource” option4=”None of these” correct=”option2″]
Detailed Solution. . . . . . . . Accounting provides information for cost control.
118. Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of
[amp_mcq option1=”production driver” option2=”cost driver” option3=”price driver” option4=”estimation driver” correct=”option2″]
119. 50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.
[amp_mcq option1=”Rs. 1.25″ option2=”Rs. 8.00″ option3=”Rs. 8.75″ option4=”Rs. 8.88″ correct=”option3″]
120. The term cost refers to ________.
[amp_mcq option1=”the present value of future benefits” option2=”the value of sacrifice made to acquire goods or services” option3=”an asset that has given benefit but now expired” option4=”the price of products sold or services rendered” correct=”option2″]