Costing

[amp_mcq option1=”other good product” option2=”trading a/c” option3=”profit and loss a/c” option4=”costing profit and loss a/c” correct=”option3″]

Detailed SolutionValue of normal loss is charged to ________.

[amp_mcq option1=”Material” option2=”Labour” option3=”Expenses” option4=”All of the above” correct=”option4″]

Detailed SolutionElements of cost are

[amp_mcq option1=”partial cost” option2=”relevant cost” option3=”incremental cost” option4=”irrelevant cost” correct=”option3″]

Detailed SolutionAn additional cost, incurred for some specific activity to bring processed product on to next production stage is

[amp_mcq option1=”Both (A) and (R) are true and (R) is the correct explanation of (A)” option2=”(A) is true, but (R) is not true” option3=”(A) is not true, but (R) is true” option4=”Both (A) and (R) are false” correct=”option2″]

Detailed SolutionAssertion (A) Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm. Reason (R) Cash is an important constituent of the working capital based on the recorded facts only.

[amp_mcq option1=”Gross weighted spoilage” option2=”inventoriable spoilage” option3=”partial spoilage” option4=”total spoilage” correct=”option1″]

Detailed SolutionSum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate

[amp_mcq option1=”company structure” option2=”organization structure” option3=”line of authority” option4=”line of responsibility” correct=”option3″]

Detailed SolutionAn arrangement of line of authority within company is classified as

[amp_mcq option1=”plan coordination” option2=”plan accounts” option3=”obtain information” option4=”coverage information” correct=”option3″]

Detailed SolutionSecond step in developing operating budget is to

[amp_mcq option1=”long-term” option2=”very long-term” option3=”short-term” option4=”very short-term” correct=”option3″]

Detailed SolutionCash Budget is a . . . . . . . . budget.

[amp_mcq option1=”Long-term capital funds” option2=”Government assistance” option3=”Internal financing” option4=”Short-term loans from banks” correct=”option1″]

Detailed SolutionPermanent working capital is generally financed through

[amp_mcq option1=”a-1, b-2, c-3, d-4″ option2=”a-3, b-4, c-1, d-2″ option3=”a-3, b-4, c-2, d-1″ option4=”a-2, b-3, c-4, d-1″ correct=”option1″]

Detailed SolutionMatch the items in List-I with the items in List-II and indicate the correct answer. List-I List-II a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance c. Interest coverage ratio 3. Long-term debts/Shareholder’s Funds d. Capital gearing ratio 4. Shareholder’s Funds/Total Assets