Costing

11. Worse fit between estimated cost and actual observations is shown on regression line with

larger residual terms
zero residual terms
variable residual terms
smaller residual terms

Detailed SolutionWorse fit between estimated cost and actual observations is shown on regression line with

12. Tender for construction is an

Estimation of profit
Estimation of cost
Estimation of selling price
Estimation of work

Detailed SolutionTender for construction is an

13. Total Material cost variance =

Standard cost of materials - actual cost of materials
Budgeted cost of materials - actual cost of materials
Standard cost of materials - budgeted cost of materials
Actual cost of materials - budgeted cost of materials

Detailed SolutionTotal Material cost variance =

14. Cost accounting concepts include all the following except ________.

planning
controlling
profit sharing
product costing

Detailed SolutionCost accounting concepts include all the following except ________.

15. The requirements of a particular job are known as . . . . . . . .

job description
job specifications
job evaluation
Both A and B

Detailed SolutionThe requirements of a particular job are known as . . . . . . . .

16. Description in mathematical form to represent changes in cost, with level of activity related to that cost is classified as

cost function
revenue function
unit function
relative function

Detailed SolutionDescription in mathematical form to represent changes in cost, with level of activity related to that cost is classified as

17. Fixed Cost ± Profit or Loss = . . . . . . . .

Variable Cost
Marginal Cost
Contribution
Margin of Safety E. Break Even Point

Detailed SolutionFixed Cost ± Profit or Loss = . . . . . . . .

18. Cost Unit is defined as:

Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control
Centres having the responsibility of generating and maximising profits
Centres concerned with earning an adequate return on investment

Detailed SolutionCost Unit is defined as:

19. Which one of the following concepts is used as fund in the preparation of funds flow statement?

Current Assets
Working Capital
Cash
All Financial Resources

Detailed SolutionWhich one of the following concepts is used as fund in the preparation of funds flow statement?

20. . . . . . . . . budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

Master
Fixed
Flexible
All of these

Detailed Solution. . . . . . . . budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

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