Costing

11. This is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.

maximum stock level
minimum stock level
reorder level
average stock level

Detailed SolutionThis is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.

12. Which of the following will be affected by normal loss?

Costing profit
Financial profit
Process profit
cost of Good units

Detailed SolutionWhich of the following will be affected by normal loss?

13. Capacity Ratio =

$$ rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$
$$ rac{{{ ext{Actual hours worked}}}}{{{ ext{Budgeted hours}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionCapacity Ratio =

14. Under which method the rate of wages are linked with the cost of living index?

Flat time rate
High day rate
Measured day rate
Graduated time rate

Detailed SolutionUnder which method the rate of wages are linked with the cost of living index?

15. . . . . . . . . is an example of long-term budget.

Cash budget
Capital expenditure budget
Research and development budget
Both B and C

Detailed Solution. . . . . . . . is an example of long-term budget.

16. In cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through

price index
cost index
profit index
cost driver index

Detailed SolutionIn cause and effect relationship between cost level and cost driver, inflationary price effects are removed by dividing cost through

17. Balance sheet, in which all costs of product that must be considered as its assets, is said to be

factory overhead costs
manufacturing overhead costs
Inventoriable costs
finished costs

Detailed SolutionBalance sheet, in which all costs of product that must be considered as its assets, is said to be

18. The quantity of material to be ordered at one time is known as . . . . . . . . .

ordering quantity
commercial order quantity
economic order quantity
None of these

Detailed SolutionThe quantity of material to be ordered at one time is known as . . . . . . . . .

19. Joint cost allocation method for joint products, which is based on achievable value is known as

joint products value at split off method
main product cost at split off method
Gross realizable value method
net realizable value method

Detailed SolutionJoint cost allocation method for joint products, which is based on achievable value is known as

20. Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

can not
can
may or may not
must

Detailed SolutionUncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

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