Costing

11. VED analysis is related to

Management
Machines
Materials
Workers

Detailed SolutionVED analysis is related to

12. What does a high payout ratio indicate?

A high Earning Per Share (EPS)
The management is not ploughing back enough profit
The management is ploughing back profit
The company is earning high profit

Detailed SolutionWhat does a high payout ratio indicate?

13. A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan?

Rs. 720
Rs. 540
Rs. 600
Rs. 900

Detailed SolutionA worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan?

14. Graphical representation of cost driver data and costs is considered as

plotting data
plotting costs
plotting cost drivers
plotting curved line

Detailed SolutionGraphical representation of cost driver data and costs is considered as

15. Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as

revenue allocation
revenue object
revenue increment
reciprocal revenue

Detailed SolutionProcess in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as

16. Cost accounting is based on . . . . . . . . . figures.

estimated
historical
actual
None of these

Detailed SolutionCost accounting is based on . . . . . . . . . figures.

17. If residual error is 25 and predicted cost value is 50, then observed cost value would be

100
25
50
75

Detailed SolutionIf residual error is 25 and predicted cost value is 50, then observed cost value would be

18. Fixed cost is a cost:

Which changes in total in proportion to changes in output
which is partly fixed and partly variable in relation to output
Which do not change in total during a given period despite changes in output
which remains same for each unit of output

Detailed SolutionFixed cost is a cost:

19. . . . . . . . . costing is used in transport undertakings.

Process
Service
Multiple
Job

Detailed Solution. . . . . . . . costing is used in transport undertakings.

20. Which of the following is not a cash outflow for the firm?

Taxes
Interest payments
Dividends
Depreciation

Detailed SolutionWhich of the following is not a cash outflow for the firm?

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