Costing

11. Administration expenses are mostly . . . . . . . .

semi-variable
variable
fixed
None of these

Detailed SolutionAdministration expenses are mostly . . . . . . . .

12. AFC is computed by:

$$ rac{{{ ext{TFC}}}}{{ ext{Q}}}$$
$$ rac{{ ext{Q}}}{{{ ext{FC}}}}$$
$$ rac{{{ ext{TFC}}}}{{{ ext{FC}}}}$$
$$ rac{{{ ext{FC}}}}{{{ ext{TC}}}}$$

Detailed SolutionAFC is computed by:

13. Match the following. List-I List-II a. Variable costing 1. Absorption costing b. Valuation of stock is higher 2. Fixed cost is excluded from inventory valuation c. Marginal and differential costs are same 3. Marginal costing d. Marginal costing 4. No change in fixed cost

a-3, b-4, c-1, d-2
a-3, b-1, c-4, d-2
a-4, b-3, c-1, d-2
a-4, b-3, c-2, d-1

Detailed SolutionMatch the following. List-I List-II a. Variable costing 1. Absorption costing b. Valuation of stock is higher 2. Fixed cost is excluded from inventory valuation c. Marginal and differential costs are same 3. Marginal costing d. Marginal costing 4. No change in fixed cost

14. Costing refers to the techniques and processes of ________.

ascertainment of costs
allocation of costs
apportion of costs
distribution of costs

Detailed SolutionCosting refers to the techniques and processes of ________.

15. Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

0% and 100%
0% and 120%
0% and 83%
None of these

Detailed SolutionUnder Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

16. Element/s of Cost of a product are:

Material only
Labour only
Expenses only
Material, Labour and expenses

Detailed SolutionElement/s of Cost of a product are:

17. Basis of apportionment of stores service expenses is . . . . . . . .

value of materials consumed
units of material consumed
products produced
None of these

Detailed SolutionBasis of apportionment of stores service expenses is . . . . . . . .

18. What is Economic Order Quantity?

Cost of an order
Cost of stock
Reorder level
Optimum order size

Detailed SolutionWhat is Economic Order Quantity?

19. Weak relationship between cost and cost driver is indicated on a regression line, which is

curved
slightly sloped
completely sloped
dotted

Detailed SolutionWeak relationship between cost and cost driver is indicated on a regression line, which is

20. If required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be

$6.20
$7.20
$4.20
$5.20

Detailed SolutionIf required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be

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