Costing Archives

111. Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period

Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period

Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion

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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:

Abnormal Cost

Marginal Cost

Fixed Cost

Semi Variable Cost E. Sunk Cost

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113. Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

step down allocation method

stand-alone revenue allocation method

incremental revenue allocation method

revenue mix allocation method

Detailed SolutionMethod of revenue allocation, which ranks products included

in bundle according to predetermined criteria of management is known as

114. Which of the following statements is true about standard labour time?

Standard labour time indicates the time in hours needed for a specific process

It is standardized on the basis of past experience

In fixing standard time, due allowance should not be given to fatigue and tool setting

Detailed SolutionWhich of the following statements is true about standard labour time?

115. Efficiency Ratio =

$$rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$

$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$

$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionEfficiency Ratio =

116. An overtime is considered in cost accounting as

indirect costs

overhead costs

premium costs

both a and b

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117. . . . . . . . . Accounting provides information for cost control.

Financial

Cost

Human Resource

None of these

Detailed Solution. .

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. . . . . . 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

production driver

cost driver

price driver

estimation driver

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