Costing

11. Which method of costing can be used in furniture manufacture industry?

Job costing
Contract costing
Process costing
Specific order costing

Detailed SolutionWhich method of costing can be used in furniture manufacture industry?

12. Learning curve models include

cumulative average time learning model
incremental unit time learning model
incremental production learning model
both a and b

Detailed SolutionLearning curve models include

13. Direct material is a ________.

manufacturing cost
administrative cost
selling cost
distribution cost

Detailed SolutionDirect material is a ________.

14. In regression analysis, if observed cost value is 50 and predicted cost value is 7, then disturbance term will be

57
43
67
47

Detailed SolutionIn regression analysis, if observed cost value is 50 and predicted cost value is 7, then disturbance term will be

15. A document which consists information about labour time usage, for specific job in a specific department, is known as

selling time record
labour time record
buying time record
direct time record

Detailed SolutionA document which consists information about labour time usage, for specific job in a specific department, is known as

16. If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be

$7,500
$7,000
$6,500
$6,000

Detailed SolutionIf relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be

17. Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

25%
30%
60%
75%

Detailed SolutionFactory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

18. The relationship between two financial variables can be expressed in

Pure ratio
Percentage
Rate or time
Either of the above

Detailed SolutionThe relationship between two financial variables can be expressed in

19. Overvaluation of opening stock in financial accounting results ________.

decreases costing profit
decreases financial accounts profit
increases costing profit
increases financial accounts profit

Detailed SolutionOvervaluation of opening stock in financial accounting results ________.

20. Practice, which makes target more achievable by underestimating revenues or overestimating cost is called

cost slack
target slack
budgetary slack
revenue slack

Detailed SolutionPractice, which makes target more achievable by underestimating revenues or overestimating cost is called

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