Costing

[amp_mcq option1=”corresponding variance” option2=”resultant variance” option3=”flexible budget variance” option4=”static budget variance” correct=”option3″]

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

[amp_mcq option1=”abnormal gain” option2=”abnormal loss” option3=”normal loss” option4=”income” correct=”option3″]

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

[amp_mcq option1=”$36,000″ option2=”$46,000″ option3=”$56,000″ option4=”$14,000″ correct=”option1″]

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

[amp_mcq option1=”Rolling budget” option2=”Continuous budget” option3=”Annual budget” option4=”Both A and B” correct=”option2″]

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

[amp_mcq option1=”Net profit ratio * Capital turnover ratio” option2=”Operating net profit ratio * Shareholders fund” option3=”Net profit/Sales” option4=”Cost of sales/Capital employed” correct=”option3″]

Detailed SolutionReturn on Investment (RoI) is computed as

[amp_mcq option1=”allocation” option2=”allotment” option3=”primary distribution” option4=”secondary distribution” correct=”option1″]

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

[amp_mcq option1=”Large concerns” option2=”Small concerns” option3=”All concerns” option4=”Both B and C” correct=”option4″]

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

[amp_mcq option1=”material cost” option2=”labour cost” option3=”prime cost” option4=”factory cost” correct=”option4″]

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

[amp_mcq option1=”Re-order point valuation method” option2=”Periodic inventory method” option3=”Perpetual inventory method” option4=”A, B, C analysis technique” correct=”option3″]

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

[amp_mcq option1=”1800 units” option2=”2300 units” option3=”10300 units” option4=”1500 units” correct=”option1″]

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