Costing

11. Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion
Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period

Detailed SolutionWhich one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

12. The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

Abnormal Cost
Marginal Cost
Fixed Cost
Semi Variable Cost E. Sunk Cost

Detailed SolutionThe amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

13. Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

step down allocation method
stand-alone revenue allocation method
incremental revenue allocation method
revenue mix allocation method

Detailed SolutionMethod of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as

14. Which of the following statements is true about standard labour time?

Standard labour time indicates the time in hours needed for a specific process
It is standardized on the basis of past experience
In fixing standard time, due allowance should not be given to fatigue and tool setting
The production manager does not provide any input in setting the labour time standards

Detailed SolutionWhich of the following statements is true about standard labour time?

15. Efficiency Ratio =

$$ rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$
$$ rac{{{ ext{Actual hours worked}}}}{{{ ext{Budgeted hours}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$
$$ rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionEfficiency Ratio =

16. An overtime is considered in cost accounting as

indirect costs
overhead costs
premium costs
both a and b

Detailed SolutionAn overtime is considered in cost accounting as

17. . . . . . . . . Accounting provides information for cost control.

Financial
Cost
Human Resource
None of these

Detailed Solution. . . . . . . . Accounting provides information for cost control.

18. Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of

production driver
cost driver
price driver
estimation driver

Detailed SolutionCause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of

19. 50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.

Rs. 1.25
Rs. 8.00
Rs. 8.75
Rs. 8.88

Detailed Solution50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.

20. The term cost refers to ________.

the present value of future benefits
the value of sacrifice made to acquire goods or services
an asset that has given benefit but now expired
the price of products sold or services rendered

Detailed SolutionThe term cost refers to ________.

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