Costing

11. Responsibility accounting aims at collecting and reporting costing information

Department-wise
Cost centre-wise
Function-wise
Product-wise

Detailed SolutionResponsibility accounting aims at collecting and reporting costing information

12. Specific price method of valuing material issue is used when . . . . . . . .

materials are purchased for specific job or work order
materials are subject to natural wastage
prices fluctuate
None of these

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

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

Detailed SolutionMatch 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

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:

12960
14400
15840
16000

Detailed SolutionBudgeted 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:

15. If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be

$40,000
$154,000
$164,000
$124,000

Detailed SolutionIf sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be

16. The process of comparing various financial factors of a company over a period of time is known as

Inter-firm comparison
Ratio analysis
Intra-firm comparison
Inter-industry comparison

Detailed SolutionThe process of comparing various financial factors of a company over a period of time is known as

17. In service costing, fixed charges are also called as . . . . . . . .

standing charges
variable charges
fixed charges
None of these

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

15.67 per piece
16.67 per piece
14.67 per piece
13.67 per piece

Detailed SolutionIf budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be

19. For estimation of each cost pool for cost function, attention must be paid to

cost object hierarchy
management hierarchy
price hierarchy
cost hierarchy

Detailed SolutionFor estimation of each cost pool for cost function, attention must be paid to

20. A cost unit is ________.

the cost per machine hour
the cost per labour hour
a unit of production or service in relation to which costs are ascertained
a measure of work output in a standard hour

Detailed SolutionA cost unit is ________.

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