[amp_mcq option1=”Department-wise” option2=”Cost centre-wise” option3=”Function-wise” option4=”Product-wise” correct=”option2″]
Detailed SolutionResponsibility accounting aims at collecting and reporting costing information
Costing
12. Specific price method of valuing material issue is used when . . . . . . . .
[amp_mcq option1=”materials are purchased for specific job or work order” option2=”materials are subject to natural wastage” option3=”prices fluctuate” option4=”None of these” correct=”option1″]
Detailed SolutionSpecific price method of valuing material issue is used when . . . . . . . .
13. Match the group of List-I with those of List-II and choose the correct answer List-I List-II a. Direct wages 1. Factory expenditure b. Packing 2. Prime cost c. Depreciation 3. Sales cost d. Legal expenses 4. Office expenses
[amp_mcq option1=”a-1, b-2, c-3, d-4″ option2=”a-2, b-3, c-1, d-4″ option3=”a-4, b-3. c-2, d-1″ option4=”a-2, b-3, c-4, d-1″ correct=”option1″]
14. Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for March, in units is:
[amp_mcq option1=”12960″ option2=”14400″ option3=”15840″ option4=”16000″ correct=”option1″]
15. If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be
[amp_mcq option1=”$40,000″ option2=”$154,000″ option3=”$164,000″ option4=”$124,000″ correct=”option1″]
16. The process of comparing various financial factors of a company over a period of time is known as
[amp_mcq option1=”Inter-firm comparison” option2=”Ratio analysis” option3=”Intra-firm comparison” option4=”Inter-industry comparison” correct=”option2″]
17. In service costing, fixed charges are also called as . . . . . . . .
[amp_mcq option1=”standing charges” option2=”variable charges” option3=”fixed charges” option4=”None of these” correct=”option1″]
Detailed SolutionIn service costing, fixed charges are also called as . . . . . . . .
18. If budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be
[amp_mcq option1=”15.67 per piece” option2=”16.67 per piece” option3=”14.67 per piece” option4=”13.67 per piece” correct=”option1″]
19. For estimation of each cost pool for cost function, attention must be paid to
[amp_mcq option1=”cost object hierarchy” option2=”management hierarchy” option3=”price hierarchy” option4=”cost hierarchy” correct=”option4″]
Detailed SolutionFor estimation of each cost pool for cost function, attention must be paid to
20. A cost unit is ________.
[amp_mcq option1=”the cost per machine hour” option2=”the cost per labour hour” option3=”a unit of production or service in relation to which costs are ascertained” option4=”a measure of work output in a standard hour” correct=”option3″]