Costing

11. An ability of an accounting system, to point out use of resources in every step of production process is called

back-flush trails
audit trails
trigger trails
lead manufacturing trails

Detailed SolutionAn ability of an accounting system, to point out use of resources in every step of production process is called

12. Factory overhead is also called as ________.

sundry overhead
extra overhead
works overhead
total overhead

Detailed SolutionFactory overhead is also called as ________.

13. First step in estimation of cost function by using quantitative analysis is to

choose price estimation method
choose dependent variable
choose independent variable
choose cost estimation method

Detailed SolutionFirst step in estimation of cost function by using quantitative analysis is to

14. Marginal cost is a:

Additional cost
Full cost
Pure cost
None of these

Detailed SolutionMarginal cost is a:

15. An estimation of relationship between two or more independent variables and dependent variable is classified as

One variable series
multiple regression
simple regression
Two way regression

Detailed SolutionAn estimation of relationship between two or more independent variables and dependent variable is classified as

16. If coefficients are similar for two accounting periods, then single cost relationship is estimated with help of

data of fixed cost
cost driver of data
pool of data
cost object of data

Detailed SolutionIf coefficients are similar for two accounting periods, then single cost relationship is estimated with help of

17. Types of spoilage include

normal spoilage
abnormal spoilage
weighted spoilage
both a and b

Detailed SolutionTypes of spoilage include

18. Operating costing is more suitable for ________ industries

profit
Services
Profit and service
government organisation

Detailed SolutionOperating costing is more suitable for ________ industries

19. Which of the following are the benefits of responsibility accounting? I. It facilitates the centralization of decision-making. II. It provides a system of closer control. III. It measures the performance of individuals in an objective manner. IV. It develops a sense of cost-consciousness among managers and their subordinates.

I, II and III
II, III and IV
I, II and IV
I, III and IV

Detailed SolutionWhich of the following are the benefits of responsibility accounting? I. It facilitates the centralization of decision-making. II. It provides a system of closer control. III. It measures the performance of individuals in an objective manner. IV. It develops a sense of cost-consciousness among managers and their subordinates.

20. Which of the following are the methods of determining cost behaviour? I. High and low point method II. Least square regression method III. Accounting or analytical approach IV. Non-parametric method Choose the correct answer from the options given below

I, II and IV
I, III, and IV
II, III and IV
I, II and III

Detailed SolutionWhich of the following are the methods of determining cost behaviour? I. High and low point method II. Least square regression method III. Accounting or analytical approach IV. Non-parametric method Choose the correct answer from the options given below

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