Costing

11. Total transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate

cost per good units transferred out
cost per good units transferred in
revenue per good units transferred out
revenue per good units transferred in

Detailed SolutionTotal transferred-out cost plus normal spoilage is divided by number of goods units produced to calculate

12. Activity 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 SolutionActivity Ratio =

13. The labour rate of pay variance can be calculated by which of the following equations?

Budgeted labour costs - Actual labour costs
(Standard hours - Actual hours) × Actual wage rate
(Standard wage rate - Actual wage rate) × Actual hours worked
(Standard wage rate - Actual wage rate) × Standard hours worked

Detailed SolutionThe labour rate of pay variance can be calculated by which of the following equations?

14. In regression equation Y = $6000 + (per unit cost x number of units), ‘$6000’ is a

constant
variable
expression
base and exponent

Detailed SolutionIn regression equation Y = $6000 + (per unit cost x number of units), ‘$6000’ is a

15. Which one out of the following is not an inventory valuation method?

FIFO
LIFO
Weighted Average
EOQ

Detailed SolutionWhich one out of the following is not an inventory valuation method?

16. Strength of relationship between cost driver and cost is considered as

badness of residual
goodness of residual
badness of fit
goodness of fit

Detailed SolutionStrength of relationship between cost driver and cost is considered as

17. Consider the following. 1. Basic defensive and interval ratio 2. Current ratio 3. Super quick ratio 4. Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.

2, 4, 3 and 1
1, 2, 4 and 3
4, 2, 3 and 1
3, 4, 1 and 2

Detailed SolutionConsider the following. 1. Basic defensive and interval ratio 2. Current ratio 3. Super quick ratio 4. Quick ratio Arrange these ratios in sequence to reflect the liquidity in descending order.

18. Variance used by managers to check whether company has performed well and properly implemented strategies is considered as

strategic implementation
proper implementation
performance evaluation
well evaluated

Detailed SolutionVariance used by managers to check whether company has performed well and properly implemented strategies is considered as

19. ‘EOQ’ is used in:

Inventory Management
Receivables Management
Cash Management
Ratio Analysis

Detailed Solution‘EOQ’ is used in:

20. A group items in ABC system of inventory control are

Small number of items with large rupee investment
Large number of items with large rupee investment
Large number of items with small money investment
Very high quality items

Detailed SolutionA group items in ABC system of inventory control are

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23Test 24