Costing

11. Value of normal loss is charged to ________.

other good product
trading a/c
profit and loss a/c
costing profit and loss a/c

Detailed SolutionValue of normal loss is charged to ________.

12. Elements of cost are

Material
Labour
Expenses
All of the above

Detailed SolutionElements of cost are

13. An additional cost, incurred for some specific activity to bring processed product on to next production stage is

partial cost
relevant cost
incremental cost
irrelevant cost

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

14. Assertion (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.

Both (A) and (R) are true and (R) is the correct explanation of (A)
(A) is true, but (R) is not true
(A) is not true, but (R) is true
Both (A) and (R) are false

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.

15. Sum 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

Gross weighted spoilage
inventoriable spoilage
partial spoilage
total spoilage

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

16. An arrangement of line of authority within company is classified as

company structure
organization structure
line of authority
line of responsibility

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

17. Second step in developing operating budget is to

plan coordination
plan accounts
obtain information
coverage information

Detailed SolutionSecond step in developing operating budget is to

18. Cash Budget is a . . . . . . . . budget.

long-term
very long-term
short-term
very short-term

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

19. Permanent working capital is generally financed through

Long-term capital funds
Government assistance
Internal financing
Short-term loans from banks

Detailed SolutionPermanent working capital is generally financed through

20. Match 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

a-1, b-2, c-3, d-4
a-3, b-4, c-1, d-2
a-3, b-4, c-2, d-1
a-2, b-3, c-4, d-1

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

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