[amp_mcq option1=”Cost Centres only” option2=”Profit Centres only” option3=”Investment Centres only” option4=”Cost Centres, Profit Centres and Investment Centres” correct=”option4″]
Detailed SolutionResponsibility Centre can be categorised into:
Costing
12. Cost that has elements of variable and fixed costs at same time is
[amp_mcq option1=”variable cost” option2=”mixed cost” option3=”semi variable cost” option4=”Both B and C” correct=”option2″]
Detailed SolutionCost that has elements of variable and fixed costs at same time is
13. If difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be
[amp_mcq option1=”$16,000″ option2=”$200″ option3=”$400″ option4=”$20,000″ correct=”option1″]
14. The formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:
[amp_mcq option1=”Total ordering cost” option2=”Total carrying cost” option3=”Opportunity cost” option4=”Re-order point” correct=”option2″]
Detailed SolutionThe formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:
15. Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate
[amp_mcq option1=”annual irrelevant ordering costs” option2=”annual relevant carrying costs” option3=”annual relevant ordering costs” option4=”annual irrelevant carrying costs” correct=”option3″]
16. Cost accounting differs from financial accounting in respect of ________.
[amp_mcq option1=”reporting of cost” option2=”ascertainment of cost” option3=”control of cost” option4=”recording of cost” correct=”option1″]
Detailed SolutionCost accounting differs from financial accounting in respect of ________.
17. In assumptions testing, violation of constant variance is called
[amp_mcq option1=”heteroscedasticity” option2=”heterogeneous” option3=”homogenous” option4=”homoscedasticity” correct=”option1″]
Detailed SolutionIn assumptions testing, violation of constant variance is called
18. Sale of defectives is reduced from ________.
[amp_mcq option1=”prime cost” option2=”works cost” option3=”cost of production” option4=”cost of sales” correct=”option4″]
Detailed SolutionSale of defectives is reduced from ________.
19. Net realizable value is added into separate costs to calculate
[amp_mcq option1=”split off costs” option2=”final cost of direct labour” option3=”final sales” option4=”final costs” correct=”option1″]
Detailed SolutionNet realizable value is added into separate costs to calculate
20. The loss which arise in manufacturing activity on account of inherent nature of the product is ________.
[amp_mcq option1=”normal loss” option2=”abnormal loss” option3=”net loss” option4=”gross loss” correct=”option1″]