[amp_mcq option1=”Cash Budget” option2=”Capital Expenditure Budget” option3=”Sales Budget” option4=”Overhead Budget” correct=”option1″]
Costing
12. If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be
[amp_mcq option1=”109.87″ option2=”$107.78″ option3=”$106.56″ option4=”$104.34″ correct=”option3″]
13. Budget, which predicts effect of given level of operations on a cash position is classified as
[amp_mcq option1=”market budget” option2=”price schedule” option3=”planned schedule” option4=”cash budget” correct=”option4″]
14. Material mix variance = standard cost of standard mix – . . . . . . . .
[amp_mcq option1=”Actual cost of actual mix” option2=”Actual cost of standard mix” option3=”Standard cost of actual mix” option4=”Standard cost of budgeted mix” correct=”option1″]
Detailed SolutionMaterial mix variance = standard cost of standard mix – . . . . . . . .
15. Under inflationary conditions a higher value of inventory is assigned under:
[amp_mcq option1=”LIFO method” option2=”FIFO method” option3=”Weighted average method” option4=”None of the above” correct=”option1″]
Detailed SolutionUnder inflationary conditions a higher value of inventory is assigned under:
16. Contribution less fixed cost is
[amp_mcq option1=”Profit” option2=”Sales” option3=”Price” option4=”MOS” correct=”option1″]
17. Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as
[amp_mcq option1=”indirect method” option2=”direct method” option3=”step down method” option4=”reciprocal method” correct=”option4″]
18. Higher and accurate budgeted profit forecast of managers lead to
[amp_mcq option1=”high incentive bonus” option2=”low incentive bonus” option3=”influence bonus” option4=”revenue bonus” correct=”option1″]
Detailed SolutionHigher and accurate budgeted profit forecast of managers lead to
19. Direct cost assignment for specific cost object is classified as
[amp_mcq option1=”cost object line cost” option2=”cost tracing” option3=”cost object indirect cost” option4=”cost object staff cost” correct=”option1″]
Detailed SolutionDirect cost assignment for specific cost object is classified as
20. Approaches to allocate costs of support department do not include
[amp_mcq option1=”sales mix allocation method” option2=”dual-rate cost-allocation method” option3=”single rate cost allocation method” option4=”both b and c” correct=”option4″]
Detailed SolutionApproaches to allocate costs of support department do not include