Costing

11. Directors remuneration and expenses form part of ________.

production overhead
administrative overhead
selling overhead
distribution overhead

Detailed SolutionDirectors remuneration and expenses form part of ________.

12. Lower level of production leads to

higher setup cost
lower repair cost
higher setup cost
higher repair cost

Detailed SolutionLower level of production leads to

13. In assumptions of specific analysis, normality of residuals is satisfied with use of

real price data
real cost data
multiplier data
divisional data

Detailed SolutionIn assumptions of specific analysis, normality of residuals is satisfied with use of

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?

Rs 489
Rs 606
Rs 996
Rs 1300

Detailed SolutionA 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?

15. Kaizen costing is applied to a product that is

produced
under production
targeted to produce
sold to customer

Detailed SolutionKaizen costing is applied to a product that is

16. Variable cost per unit ________.

varies when output varies
remains constant
increase when output increases
decreases when output decreases

Detailed SolutionVariable cost per unit ________.

17. ABC analysis is ________.

At best Control
Always better Control
Average better Control
All best control

Detailed SolutionABC analysis is ________.

18. Opportunity cost of capital invested in inventory is included in:

Ordering cost
Carrying cost
Stock-out cost
Overheads

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

indirect costs
direct cost
labour cost
raw material cost

Detailed SolutionIn activity based costing method implementation, an output unit level costs are classified as

20. If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be

$87,500
$97,500
$67,500
$57,500

Detailed SolutionIf actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23Test 24