Costing

11. Difference between flexible budget amount and corresponding actual result is called

corresponding variance
resultant variance
flexible budget variance
static budget variance

Detailed SolutionDifference between flexible budget amount and corresponding actual result is called

12. When actual loss is less than the estimated loss, the difference between the two is considered to be . . . . . . . .

abnormal gain
abnormal loss
normal loss
income

Detailed SolutionWhen actual loss is less than the estimated loss, the difference between the two is considered to be . . . . . . . .

13. If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is

$36,000
$46,000
$56,000
$14,000

Detailed SolutionIf actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is

14. . . . . . . . . is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

Rolling budget
Continuous budget
Annual budget
Both A and B

Detailed Solution. . . . . . . . is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

15. Return on Investment (RoI) is computed as

Net profit ratio * Capital turnover ratio
Operating net profit ratio * Shareholders fund
Net profit/Sales
Cost of sales/Capital employed

Detailed SolutionReturn on Investment (RoI) is computed as

16. Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

allocation
allotment
primary distribution
secondary distribution

Detailed SolutionAllotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

17. The technique of standard costing may not be applicable in case of:

Large concerns
Small concerns
All concerns
Both B and C

Detailed SolutionThe technique of standard costing may not be applicable in case of:

18. Office and administrative expenses can be charged on the basis of _______.

material cost
labour cost
prime cost
factory cost

Detailed SolutionOffice and administrative expenses can be charged on the basis of _______.

19. The system which gives a continuous information regarding quantum and value of inventory is known as:

Re-order point valuation method
Periodic inventory method
Perpetual inventory method
A, B, C analysis technique

Detailed SolutionThe system which gives a continuous information regarding quantum and value of inventory is known as:

20. If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

1800 units
2300 units
10300 units
1500 units

Detailed SolutionIf beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

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