Costing

11. Match the following. List-I List-II a. Increase in fund 1. Application of funds b. Goods purchased on credit 2. Drain in working capital c. Commission outstanding 3. Sources of funds d. Net loss 4. No flow of funds

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

Detailed SolutionMatch the following. List-I List-II a. Increase in fund 1. Application of funds b. Goods purchased on credit 2. Drain in working capital c. Commission outstanding 3. Sources of funds d. Net loss 4. No flow of funds

12. Service departments costs should be allocated to:

Only Service departments
Only Production departments
Both Production and service departments
None of the production and service departments

Detailed SolutionService departments costs should be allocated to:

13. Difference between job time and attendance time is

job time
actual time
over time
idle time

Detailed SolutionDifference between job time and attendance time is

14. In ratio analysis, ‘proforma analysis’ implies

making a list of all the present ratios of the firm
comparison of liquidity ratios with other kind ofratio of the firm
comparison of the ratio of the firm relating to the performance of the firm
comparison of the firm's past and current ratios with future ratios to ascertain the relative strengths and weakness in the past and future

Detailed SolutionIn ratio analysis, ‘proforma analysis’ implies

15. Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate

expected indirect cost rate
expected direct cost rate
budgeted indirect cost rate
budgeted direct cost rate

Detailed SolutionBudgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate

16. The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

Rs 145
Rs 150
Rs 152
Rs 140

Detailed SolutionThe cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

17. . . . . . . . . budget gives different budgeted costs for different levels of activity.

Master
Fixed
Flexible
All of these

Detailed Solution. . . . . . . . budget gives different budgeted costs for different levels of activity.

18. In multicollinearity, correlation coefficient between two independent variables must be greater than

0.7
0.6
0.5
0.4

Detailed SolutionIn multicollinearity, correlation coefficient between two independent variables must be greater than

19. Increase in total variable cost is due to ________.

increase in fixed cost
increase in sales
increase in production
increase in efficiency

Detailed SolutionIncrease in total variable cost is due to ________.

20. Which of the following is a technique of financial statement analysis?

Common-size statement
Comparative statement
Trend analysis
All of the above

Detailed SolutionWhich of the following is a technique of financial statement analysis?

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