[amp_mcq option1=”production overhead” option2=”administrative overhead” option3=”selling overhead” option4=”distribution overhead” correct=”option2″]
Detailed SolutionDirectors remuneration and expenses form part of ________.
Costing
12. Lower level of production leads to
[amp_mcq option1=”higher setup cost” option2=”lower repair cost” option3=”higher setup cost” option4=”higher repair cost” correct=”option1″]
13. In assumptions of specific analysis, normality of residuals is satisfied with use of
[amp_mcq option1=”real price data” option2=”real cost data” option3=”multiplier data” option4=”divisional data” correct=”option1″]
14. A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?
[amp_mcq option1=”Rs 489″ option2=”Rs 606″ option3=”Rs 996″ option4=”Rs 1300″ correct=”option2″]
15. Kaizen costing is applied to a product that is
[amp_mcq option1=”produced” option2=”under production” option3=”targeted to produce” option4=”sold to customer” correct=”option1″]
Detailed SolutionKaizen costing is applied to a product that is
16. Variable cost per unit ________.
[amp_mcq option1=”varies when output varies” option2=”remains constant” option3=”increase when output increases” option4=”decreases when output decreases” correct=”option1″]
17. ABC analysis is ________.
[amp_mcq option1=”At best Control” option2=”Always better Control” option3=”Average better Control” option4=”All best control” correct=”option1″]
18. Opportunity cost of capital invested in inventory is included in:
[amp_mcq option1=”Ordering cost” option2=”Carrying cost” option3=”Stock-out cost” option4=”Overheads” correct=”option2″]
Detailed SolutionOpportunity cost of capital invested in inventory is included in:
19. In activity based costing method implementation, an output unit level costs are classified as
[amp_mcq option1=”indirect costs” option2=”direct cost” option3=”labour cost” option4=”raw material cost” correct=”option1″]
20. If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be
[amp_mcq option1=”$87,500″ option2=”$97,500″ option3=”$67,500″ option4=”$57,500″ correct=”option3″]