Costing

11. If all conditions or assumptions of regression analysis simple regression can give

dependent estimation
independent estimation
reliable estimates
unreliable estimates

Detailed SolutionIf all conditions or assumptions of regression analysis simple regression can give

12. What is the average collection period when the debt turnover ratio is 4?

5 months
4 months
3 months
2 months

Detailed SolutionWhat is the average collection period when the debt turnover ratio is 4?

13. Total Cost (+) contracts are generaelly applicable in cases where

Cost can be estimated easily
The contractor wants to earn a certain amount of profit
It is not possible to calculate the net profit in advance
None of the above

Detailed SolutionTotal Cost (+) contracts are generaelly applicable in cases where

14. Boiler house costing is an example of . . . . . . . . costing.

operation
process
service
None of these

Detailed SolutionBoiler house costing is an example of . . . . . . . . costing.

15. What is the amount of gross profit if the stock turnover ratio is 6 times; average stock is Rs. 8,000 and; selling price is 25% above cost?

Rs. 2,000
Rs. 4,000
Rs. 10,000
Rs. 12,000

Detailed SolutionWhat is the amount of gross profit if the stock turnover ratio is 6 times; average stock is Rs. 8,000 and; selling price is 25% above cost?

16. Material requisition is meant for ________.

purchase of material
supply of material from stores
sale of material
storage of material

Detailed SolutionMaterial requisition is meant for ________.

17. The loss incurred on an incomplete contract is transferred to . . . . . . . . account.

costing profit and loss account
profit and loss account
trading account
deferred to next year

Detailed SolutionThe loss incurred on an incomplete contract is transferred to . . . . . . . . account.

18. In adjustment issues of costing, database must consider wide range values of

fixed object
cost driver
cost object
mixed object

Detailed SolutionIn adjustment issues of costing, database must consider wide range values of

19. When the actual output in the production process is less than the normal, the difference between the two is called

General loss
Abnormal loss
General profit
Abnormal profit

Detailed SolutionWhen the actual output in the production process is less than the normal, the difference between the two is called

20. Job costing method is the most suitable method for ________.

oil process units
transport companies
sugar industries
repair shops

Detailed SolutionJob costing method is the most suitable method for ________.

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