Costing

11. . . . . . . . . budget may be classified into material cost budget, labour cost budget and overhead budget.

Cost of production
Purchase
Sales
Cash

Detailed Solution. . . . . . . . budget may be classified into material cost budget, labour cost budget and overhead budget.

12. An average unit cost, applicable to each similar produced units is classified as

per unit cost
per post cost
per price cost
application cost

Detailed SolutionAn average unit cost, applicable to each similar produced units is classified as

13. Salary paid to general manager is an item of . . . . . . . . expenses.

fixed
variable
semi-variable
estimated

Detailed SolutionSalary paid to general manager is an item of . . . . . . . . expenses.

14. . . . . . . . . is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.

Over absorption of overheads
Under absorption of overheads
Overheads absorption
None of these

Detailed Solution. . . . . . . . is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.

15. Cost function, in which graph of total cost would not result in straight line is classified as

nonlinear cost function
linear cost function
linear price function
nonlinear price function

Detailed SolutionCost function, in which graph of total cost would not result in straight line is classified as

16. A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?

Rs 142,485
Rs 146,183
Rs 149,746
Rs 152,986

Detailed SolutionA process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?

17. In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as

partial inventory costing method
current period inventory method
Last-in, first-out method
First-in, first-out method

Detailed SolutionIn process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as

18. An act of making sure, that all employees must understand goals is classified as

coordination
communication
annual profit plan
budgeting

Detailed SolutionAn act of making sure, that all employees must understand goals is classified as

19. “Calculate the value of closing stock from the following according to Weighted Average method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 450 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”

Rs. 765
Rs. 805
Rs. 786
Rs. 700

Detailed Solution“Calculate the value of closing stock from the following according to Weighted Average method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 450 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”

20. Piece workers are paid on the basis of ________.

output sold
output produced
output in stock
input received

Detailed SolutionPiece workers are paid on the basis of ________.

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