Costing Archives - Page 2 of 116 - MCQ and Quiz for Exams

11. Value of normal loss is charged to ________.

other good product

trading a/c

profit and loss a/c

costing profit and loss a/c

Detailed SolutionValue of normal loss is charged to ________.

12. Elements of cost are

Material

Labour

Expenses

All of the above

Detailed SolutionElements of cost are

13. An additional cost, incurred for some specific activity to bring processed product on to next production stage is

partial cost

relevant cost

incremental cost

irrelevant cost

Detailed SolutionAn additional cost, incurred for some specific activity to bring processed product on to next production stage is

14. Assertion (A) Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm. Reason (R) Cash is an important constituent of the working capital based on the recorded facts only.

Both (A) and (R) are true and (R) is the correct explanation of (A)

(A) is true, but (R) is not true

(A) is not true, but (R) is true

Both (A) and (R) are false

Detailed SolutionAssertion (A) Cash flow statement as per the financial statements as well is incapable in revealing the overall financial position of a firm. Reason (R) Cash is an important constituent of the working capital based on the recorded facts only.

15. Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate

Gross weighted spoilage

inventoriable spoilage

partial spoilage

total spoilage

Detailed SolutionSum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate

16. An arrangement of line of authority within company is classified as

company structure

organization structure

line of authority

line of responsibility

Detailed SolutionAn arrangement of line of authority within company is classified as

17. Second step in developing operating budget is to

plan coordination

plan accounts

obtain information

coverage information

Detailed SolutionSecond step in developing operating budget is to

18. Cash Budget is a . . . . . . . . budget.

long-term

very long-term

short-term

very short-term

Detailed SolutionCash Budget is a . . . . . . . . budget.

19. Permanent working capital is generally financed through

Long-term capital funds

Government assistance

Internal financing

Short-term loans from banks

Detailed SolutionPermanent working capital is generally financed through

20. Match the items in List-I with the items in List-II and indicate the correct answer. List-I List-II a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance c. Interest coverage ratio 3. Long-term debts/Shareholder’s Funds d. Capital gearing ratio 4. Shareholder’s Funds/Total Assets

a-1, b-2, c-3, d-4

a-3, b-4, c-1, d-2

a-3, b-4, c-2, d-1

a-2, b-3, c-4, d-1

Detailed SolutionMatch the items in List-I with the items in List-II and indicate the correct answer. List-I List-II a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance c. Interest coverage ratio 3. Long-term debts/Shareholder’s Funds d. Capital gearing ratio 4. Shareholder’s Funds/Total Assets

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