Costing

[amp_mcq option1=”Relationship between revenue and costs at various levels of output” option2=”Volume or output level at which the enterprises break-even” option3=”Amount of sales revenue needed to cover enterprise variable costs” option4=”Amount of sales revenue needed to cover enterprise fixed costs” correct=”option1″]

Detailed SolutionWhat is the most useful information derived from a break-even chart?

[amp_mcq option1=”activity based costing” option2=”margin based costing” option3=”goodness of costing” option4=”handling based costing” correct=”option1″]

Detailed SolutionIndividual activities such as machine setups, material handling, customer service and distribution of products are a part of

[amp_mcq option1=”Rs. 20,000″ option2=”Rs. 16,000″ option3=”Rs. 1,333″ option4=”Rs. 17,333″ correct=”option3″]

Detailed SolutionIf the present cost of the car is Rs. 1,00,000 residual value at the end of the 5th year is Rs. 20,000, the monthly depreciation is . . . . . . . .

[amp_mcq option1=”Distribution service” option2=”Hospital” option3=”Maintenance division of a manufacturing company” option4=”A light engineering company” correct=”option1″]

Detailed SolutionWhich of the following organisations should not be advised to use service costing?

[amp_mcq option1=”actual cost” option2=”budgeted cost” option3=”past cost” option4=”incurred cost” correct=”option4″]

Detailed SolutionIn accounting, cost incurred in past or in historical financial statements is classified as

[amp_mcq option1=”I and II only” option2=”I, II and III only” option3=”II, III and IV only” option4=”III and IV only” correct=”option1″]

Detailed SolutionCost-plus pricing is considered appropriate for: (I) Product Tailoring (II) Public Utility Pricing (III) Refusal Pricing (IV) Monopoly Pricing

[amp_mcq option1=”no abnormal loss and normal gain” option2=”2 units of abnormal gain” option3=”3 units of abnormal gain” option4=”3 units of normal loss” correct=”option1″]

Detailed Solution100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________.

[amp_mcq option1=”sales mix allocation method” option2=”dual-rate cost-allocation method” option3=”single rate cost allocation method” option4=”quantity variance allocation method” correct=”option3″]

Detailed SolutionSupport department cost allocation method which makes no difference between variable and fixed costs is classified as

[amp_mcq option1=”1, 3, 4 and 6″ option2=”2, 3, 5 and 6″ option3=”3, 4, 5 and 6″ option4=”1, 3, 5 and 6″ correct=”option1″]

Detailed SolutionWhich of the following are possible causes of material price variance? 1. Change in market price. 2. Use of poor quality of material. 3. Inefficient buying. 4. Untimely buying. 5. Paying overtime for urgent work. 6. Use of substitute material of different prices. Select the correct answer

[amp_mcq option1=”Both 1 and 2″ option2=”Both 2 and 3″ option3=”Both 1 and 3″ option4=”All of these” correct=”option4″]

Detailed SolutionWhy is profit volume ratio used? 1. To compute the variable cost for any volume of sales. 2. To determine break-even point and the level of output required to earn a desired profit. 3. To decide most profitable sales mix. Select the correct answer