[amp_mcq option1=”2 times” option2=”3 times” option3=”4 times” option4=”5 times” correct=”option3″]
Costing
12. Situation in which cost object has any job, customer or product is known as
[amp_mcq option1=”cost application base” option2=”sale application base” option3=”price application base” option4=”direct application base” correct=”option1″]
Detailed SolutionSituation in which cost object has any job, customer or product is known as
13. Fixed cost per unit increases when _______.
[amp_mcq option1=”variable cost per unit increases” option2=”variable cost per unit decreases” option3=”production volume increases” option4=”production volume decreases” correct=”option4″]
Detailed SolutionFixed cost per unit increases when _______.
14. Under ABC method of material control, the material are classified according to __________.
[amp_mcq option1=”its value” option2=”its usage” option3=”its nature” option4=”its availability” correct=”option1″]
15. Works cost is a total of . . . . . . . .
[amp_mcq option1=”indirect material, indirect labour” option2=”direct material, direct labour, direct or chargeable expenses and works expenses” option3=”direct material, direct labour” option4=”indirect material, indirect labour, indirect expenses” correct=”option2″]
16. Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as
[amp_mcq option1=”pricing method” option2=”manufacturing method” option3=”conference method” option4=”inference method” correct=”option1″]
17. Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as
[amp_mcq option1=”step down allocation method” option2=”stand-alone revenue allocation method” option3=”incremental revenue allocation method” option4=”revenue mix allocation method” correct=”option4″]
18. Total Labour cost variance =
[amp_mcq option1=”Standard cost of labour – actual cost of labour” option2=”Standard rate (standard time for actual output – actual time worked)” option3=”Standard rate (standard time for actual output – actual time paid for)” option4=”Actual time taken (standard rate – actual rate)” correct=”option1″]
19. If machine hours are 8000 and factory overhead absorption rate per machine hour is Rs. 8, then the absorbed factory overheads will be
[amp_mcq option1=”Rs. 1,000″ option2=”Rs. 8,000″ option3=”Rs. 64,000″ option4=”Rs. 7,992″ correct=”option2″]
20. Focus on budget cost of all activities necessary to sell and produce market offerings is known as
[amp_mcq option1=”cost based budgeting” option2=”activity based budgeting” option3=”production based budgeting” option4=”raw material budgeting” correct=”option2″]